Core Viewpoint - LG Energy Solution has received a termination notice from Ford regarding a battery supply order worth 9.6 trillion KRW (approximately 45.84 billion RMB), primarily due to changes in market conditions and electric vehicle demand forecasts [3][4]. Group 1: Order Termination Details - The terminated order was originally planned to start supplying in 2027 and is valued at approximately 54.5% of LG Energy Solution's total revenue for the first three quarters of this year, which is about 17.6 trillion KRW [3][4]. - The canceled order represents about 30% of LG Energy Solution's projected total revenue of 25.6 trillion KRW for 2024 [3][4]. - The contract termination affects a 75GWh order, while a separate 34GWh contract remains active [9]. Group 2: Ford's Strategic Adjustments - Ford announced a strategic shift, planning to write down approximately $19.5 billion in assets due to restructuring its electric vehicle business, which includes halting production of several electric vehicle models [10]. - The decision to cancel certain electric vehicle models is attributed to changes in U.S. policies, which have diminished the competitiveness of electric vehicles in the market [11][12]. - Ford's electric vehicle sales in November dropped by 42.6% year-on-year, reflecting a broader decline in the U.S. electric vehicle market [12][13]. Group 3: Focus on Energy Storage - Ford is reallocating investments from unprofitable electric vehicle projects to more lucrative areas, particularly energy storage [15]. - The company plans to invest approximately $2 billion over the next two years to expand its energy storage business, targeting a production capacity of 20GWh by 2027 [18]. - Ford aims to produce lithium iron phosphate batteries and energy storage systems, leveraging its existing manufacturing facilities [19]. Group 4: Industry Trends - Other automakers, such as Tesla and General Motors, are also expanding their energy storage offerings, indicating a shift in focus within the automotive industry towards energy solutions [20][21]. - The automotive sector is increasingly recognizing the importance of energy storage as a significant growth area, especially in light of rising electricity demands in the U.S. and Europe [22].

Core Viewpoint - Ford is expanding its investment in energy storage solutions, planning to invest approximately $2 billion over the next two years to enhance its battery energy storage systems (BESS) and meet the growing demand for energy storage in the U.S. market [3][4]. Group 1: Ford's Strategic Shift - Ford aims to utilize its existing manufacturing facilities in Kentucky and Michigan to produce lithium iron phosphate batteries and battery storage systems, with a target annual production capacity of 20 GWh by 2027 [3]. - The company is transitioning from traditional automotive manufacturing to a comprehensive energy enterprise, focusing on a "vehicle-storage-grid" ecosystem to enhance its competitiveness in the energy sector [7][8]. Group 2: Market Dynamics - The U.S. electric vehicle market is experiencing a slowdown, leading to significant losses in Ford's electric vehicle business, which has accumulated over $13 billion in losses [4]. - The global energy storage market is witnessing explosive growth, with the U.S. adding 4.7 GW of new storage capacity in Q3 2025, driven by demand from data centers, grid balancing, and renewable energy integration [6]. Group 3: Regulatory Support - The U.S. Inflation Reduction Act provides up to 40% tax credits for domestic energy storage projects, which will help reduce the costs associated with Ford's energy storage business [6]. Group 4: Competitive Landscape - Ford is not the only automaker entering the energy storage market; Tesla has been selling storage products for a decade, while General Motors has also launched battery storage solutions for residential and commercial users [7].