On the 18th, LG Energy Solution is down more than 7% intraday. Investor sentiment appears to have worsened on news that a large battery supply contract with U.S. automaker Ford was terminated.
As of 9:15 a.m. on the 18th, LG Energy Solution was trading at 385,000 won on the Korea Exchange, down 30,500 won (7.34%) from the previous session.
Earlier, LG Energy Solution disclosed on the 17th that it would terminate a contract to supply a total of 75 gigawatt-hours (GWh) of electric-vehicle batteries signed with Ford. The contract amount is 960.3 billion won. That is equivalent to 37.48% of the previous year's sales of 25.6195 trillion won.
Brokerages also lowered their target price for LG Energy Solution. Researcher Cho Hyeon-ryeol at Samsung Securities said, "Given that the contract was scheduled to begin in Jan. 2027, it is not easy at this point to immediately secure new orders to replace the volume," and lowered the target price from 550,000 won to 480,000 won.