<p>Ford sent a jolt through the American auto industry this week by scaling back its electric-vehicle ambitions and leaning harder into its core gas-truck business.</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_first_1765983853"></div></div><p>The ripple effects of that are now being felt well beyond U.S. borders. The Dearborn automaker has canceled billions of dollars’ worth of battery orders from South Korea’s LG Energy Solution (LGES) and SK On. All of that now threatens thousands of jobs and could leave a lasting mark on the battery industry.</p><p>Welcome back to <strong>Critical Materials</strong>, your daily roundup of all things electric and tech in the automotive space.</p><p>Also on our menu today:Sixteen states have sued the Trump administration for the second time this year over freezing EV charging funds. And the state of Colorado has granted Scout Motors a license to sell directly to customers, allowing it to bypass the traditional dealership model.</p><div>                                                                                                    </div><h2><span class="arrow-holder"></span>30%: Ford Cancels LG Battery Order Worth $6.5 Billion</h2><section>        <span class="svg-search">                                                </span>                            <img src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="16" height="9" original-src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png"/>        <div><p>LG Energy Solution batteries: cylindrical battery cell</p></div>    </section><p>It takes years for automakers and battery suppliers to design, develop and scale high-voltage battery packs for specific EV models. That long lead time is why carmakers lock in battery supply well in advance for vehicles that are still years away from production.</p><p>And that's one of the reasons whyFord’s EV retreat this week particularly seems painful for the battery industry, especially for its Korean partners, which were already gearing up to supply billions of dollars worth of battery packs to the American automaker.</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_1_1765983853"></div></div><p>In a regulatory filing cited by Korea’s Yonhap News Agency, this is what LGES said about the cancelled battery order:</p><blockquote><p>&#34;This matter concerns the counterparty's decision to discontinue the production of certain electric vehicle (EV) models due to recent policy changes and shifts in EV demand forecasts, and the subsequent notice of contract termination.”</p></blockquote><div><div id="ads_6122441_EV_ev_us_Native_native_3_1765983853"></div></div><div><div id="ads_6122441_EV_ev_us_Native_native_2_1765983853"></div></div><p>The $6.5 billion agreement, signed in October 2024, would have seen LGES supply 34 gigawatt-hours of batteries to Ford between 2026 and 2030. That’s enough capacity to power just under half a million EVs a year, assuming an average pack size of 75 kilowatt-hours—volumes Ford no longer believes it needs for full-size electric trucks.</p><p>On top of that, LGES had also committed to supplying another 75 GWh of batteries from 2027 through 2032 for Ford’s commercial vehicle lineup. Those packs were slated to be built at LG Energy Solution’s plant in Poland and used in electric commercial vehicles destined for Europe.</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_2_1765983853"></div></div><p>This shift follows Ford’s decision to effectively end production of the currentF-150 Lightningthis week, which topped the EV truck sales charts but did not hit mass-volume or achieve profitability in its three-year run. That’s especially so as the Trump administration rolled back the $7,500 federal EV tax credit and loosened fuel-economy rules.Ford also shelved the all-electric next-generation Lightning, internally codenamed Project T3, along with a next-generation electric commercial van.</p><p>Instead, the company is redirecting capital and engineering resources back toward gas-powered trucks while making the smaller, more affordable EVs built on its upcoming Universal EV Platform central to its EV strategy.</p><p>And the shakeup doesn’t stop there. Ford’s $11.4 billion battery joint venture with SK On also ended this week. The breakup resulted in 1,600 workers getting laid off at the Glendale, Kentucky, battery plant, which was jointly operated under the now-defunct partnership.</p><p>Under the new arrangement, Ford will take full control of the Kentucky facility, while SK On will assume ownership of the Tennessee battery plant. Both companies plan to pivot toward stationary energy storage systems (ESS), a fast-growing business driven by surging demand from the AI and renewable energy sectors.</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_3_1765983853"></div></div><h2><span class="arrow-holder"></span>60%: States Sue Trump Administration Again Over Frozen EV Charger Funds</h2><section>        <span class="svg-search">                                                </span>                            <img src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Electrify America EV Chargers" width="16" height="9" original-src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png"/>            <div>Photo by: Electrify America</div></section><p>A coalition of 17 attorneys general, representing 16 states and the District of Columbia, has filed a second lawsuit this year against the Trump administration, alleging it unlawfully withheld federal funds intended to expand the nation’s EV charging network.</p><p>The lawsuit, led by California Attorney General Rob Bonta, alleges that the U.S. Department of Transportation is withholding funds Congress has already approved for EV charging projects. As a result, billions of dollars promised to states and cities remain tied up, putting planned infrastructure projects on hold.</p><p>Here’s what Bonta said in a press release:</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_4_1765983853"></div></div><blockquote><p>“The Trump Administration’s illegal attempt to stop funding for electric vehicle infrastructure must come to an end. This is just another reckless attempt that will stall the fight against air pollution and climate change, slow innovation, thwart green job creation, and leave communities without access to clean, affordable transportation. While the Administration is busy finding ways for their Big Oil donors to profit, California will continue to fight for its people, environment, and innovation.”</p></blockquote><p>The states say that at the heart of the case is a constitutional dispute over spending authority. By blocking the release of these funds without offering a clear explanation, they’re arguing that the administration is violating Congress’s “power of the purse.” In legal terms, that practice is known as an “impoundment,” which means the refusal to spend money that Congress has already approved, which the states say is not allowed.</p><h2><span class="arrow-holder"></span>90%: Scout Motors Can Sell Directly To Customers In Colorado</h2><section>        <span class="svg-search">                                                </span>                            <img src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="Scout Traveler and Terra Concepts" width="16" height="9" original-src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png"/>            <div>Photo by: Scout Motors</div></section><p>Volkswagen Group-backed Scout Motors will be allowed to sell its upcoming electric vehicles and extended-range hybrids directly to customers in Colorado, bypassing the traditional dealership model, much as EV makers Tesla, Lucid, and Rivian have done for years.</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_5_1765983853"></div></div><p>Here’s more from Automotive News:</p><blockquote><p>Colorado’s Motor Vehicle Dealer Board voted 6-2 on Dec. 16 to approve Scout’s application to become a dealer in the state, according to a spokesperson for the Colorado Department of Revenue’s Specialized Business Group, which includes the board.</p><p><span>Scout’s detailed roadmap to sell an electric SUV and pickup to American consumers includes experience centers, speedy purchase transactions, stores in key U.S. markets and a flexible nationwide service footprint at launch.</span></p></blockquote><p>Skipping the dealership gives automakers far more control over how cars are sold and priced. It also helps eliminate surprise markups, something U.S. dealers are especially notorious for when demand spikes for popular models.</p><p>Dealers are likely to appeal the ruling, the report said, but the decision could still set a meaningful precedent for Scout, and even potentially nudging other states to follow Colorado’s lead and make it easier for Scout to roll out its own showrooms nationwide.</p><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_6_1765983853"></div></div><h2><span class="arrow-holder"></span>100%: How Can EV Charging Projects Be Protected From Politics?</h2><section>        <span class="svg-search">                                                </span>                            <img src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="BMW iX At Ionna Rechargery" width="16" height="9" original-src="https://imageproxy.pbkrs.com/https://cdn.motor1.com/images/static/16x9-tr.png"/>        <div><p>BMW iX At Ionna Rechargery</p></div>    <div>Photo by: Suvrat Kothari</div></section><p>What happens to EV adoption if charging projects keep getting stuck in political limbo? Should future EV funding come with stronger guardrails so it can’t be paused this easily? Leave your thoughts in the comments.</p><p><em>Have a tip? Contact the author: suvrat.kothari@insideevs.com</em></p><section> <p>Related Stories</p> <div> <div>                    Jaguar's Controversial Type 00 Drives Way Better Than You Think </div> <div>                    The Ford E-Transit Van Is On Its Last Legs </div> <div>                    The EU Has Officially Dropped The 2035 Gas Car Ban </div> <div>                    The Smart Car Is Coming Back—This Time Fully Electric </div> </div> </section><div><div id="ads_6122441_EV_ev_us_Rectangle_rectangle_7_1765983853"></div></div>                                                                                                                                                                                                                                                                                <section><p><span>We want your opinion!</span></p><div><p>What would you like to see on Insideevs.com?</p>Take our 3 minute survey.</div><p>- The InsideEVs team</p></section>                                                                                                    <div>                                <div>                                    Share this Story                                </div>                                <div>                                    <ul>                            <li>                                                                                                                        Facebook                                                    </li>                                    <li>                                                                                                                        X                                                    </li>                            <li>                                                                                                                        LinkedIn                                                    </li>                            <li>                                                                                                                        Flipboard                                                    </li>                                                    <li>                                                                                                                        Reddit                                                    </li>                            <li>                                                                                                                        WhatsApp                                                    </li>                            <li>                                                                                                                        E-Mail                                                    </li>                                                            </ul>                                </div>                                                                                                            <div>                                            <div>                                                                                                                                                                                                    <span class="top-counter-comments-label">GO TO COMMENTS</span>                                                                                                     <div>                                                        <span>(</span>                                                        <div></div>                                                        <span>)</span>                                                    </div>                                                                                            </div>                                        </div>                                                                                                </div>                                                            <div>                                    <div>                                        <span>Got a tip for us? 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<p>Ford has scaled back its electric vehicle plans, canceling billions in battery orders from LG Energy Solution and SK On, impacting jobs and the battery industry. Additionally, 16 states have sued the Trump administration for freezing EV charging funds, while Scout Motors received a license to sell directly to customers in Colorado.</p>

- Ford has shifted its focus away from electric vehicles, canceling a $6.5 billion battery order with Korean suppliers, which threatens numerous jobs.  
- This decision follows the halt of its F-150 Lightning production and a joint venture breakup with SK On, impacting the North American battery industry.  
- Meanwhile, sixteen states are suing the Trump administration over frozen EV charging funds, and Scout Motors has received approval to sell directly to consumers in Colorado, deviating from the traditional dealership model.

Ford’s EV Reset Leaves A Multibillion-Dollar Hole In The Battery Industry