Ford Secures Supply Deal With LG Energy For Electric Commercial Vans
Portfolio Pulse from Lekha Gupta
Ford Motor Company has signed a supply agreement with LG Energy Solution to provide batteries for its electric commercial vans in Europe, starting in 2026. The agreement also includes producing batteries for the Ford Mustang Mach-E at LG's Michigan facility from 2025. This move aims to improve business efficiency and take advantage of market conditions, including tax credits. Ford's electric vehicle sales increased by 12.2% in the last quarter.
October 15, 2024 | 2:52 pm
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Ford has secured a battery supply deal with LG Energy Solution for its electric commercial vans in Europe, starting in 2026. The agreement also includes producing batteries for the Mustang Mach-E in Michigan from 2025, aiming to enhance efficiency and leverage tax credits.
The supply agreement with LG Energy Solution is significant for Ford as it secures a long-term battery supply for its electric vans, which is crucial for its EV strategy in Europe. The shift to produce Mustang Mach-E batteries in Michigan could reduce costs and improve efficiency, benefiting from tax credits. This is likely to positively impact Ford's stock in the short term.
CONFIDENCE 95
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
The First Trust Nasdaq Transportation ETF, which includes Ford, may see a positive impact due to Ford's new battery supply deal with LG Energy Solution, enhancing Ford's EV production capabilities.
FTXR includes Ford, and the positive developments in Ford's EV strategy, such as the new battery supply deal, could enhance Ford's performance, potentially benefiting the ETF.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
The Invesco S&P Ultra Dividend Revenue ETF, which includes Ford, might experience a positive impact from Ford's battery supply agreement with LG Energy Solution, supporting Ford's EV growth.
RDIV includes Ford, and the new battery supply deal with LG Energy Solution could support Ford's EV growth, potentially benefiting the ETF.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 50