Photo: Ford
Ford Motor has announced today its strategy for sourcing 100% of battery capacity and raw materials necessary to achieve its targeted annual run rate of 600,000 electric cars and trucks by late 2023 and exceed the 2 million EVs per year by the end of 2026.
Said strategy involves a series of initiatives that will secure the battery supplies it needs to meet the strong demand it has seen for its new electric vehicles. As such, the automaker has announced it will fit lower-cost lithium iron phosphate (LFP) batteries into its Mustang Mach-E and F-150 Lightning EVs.
Additionally, it will start using LFP batteries made by Chinese battery giant Contemporary Amperex Technology (CATL) for the Mach-E in 2023, and the F-150 Lightning in 2024.
According to the company, these will be available alongside batteries with the existing nickel cobalt manganese (NCM) chemistry.
“Ford’s new electric vehicle lineup has generated huge enthusiasm and demand, and now we are putting the industrial system in place to scale quickly,” said Jim Farley, Ford’s president and CEO. “Our Model e team has moved with speed, focus and creativity to secure the battery capacity and raw materials we need to deliver breakthrough EVs for millions of customers.”
Going forward, Ford expects the demand for its EVs to continually grow and reach a compound annual growth rate for EVs greater than 90% by 2026.
And to further support its production goals, specifically that of producing 2 million EVs globally by later 2026, Ford said it already signed a separate non-binding memorandum with CATL to “explore a cooperation” for supplying batteries to cover its plants in China, Europe, and North America.
At the same time, Ford will continue relying on its current battery suppliers, the Korean companies LG Energy Solution and SK On, to meet its production targets.
The 600,000 EVs goal includes 270,000 Mustang Mach Es for North America, Europe and China, 150,000 F-150 Lightning units for North America, as well as 150,000 electric Transit vans in North America and Europe, and 30,000 units of a new SUV model for Europe.
As part of its announcement today, Ford also mentioned various other contracts to supply battery components and raw materials, including lithium, from sources in the United States, Australia, Indonesia, and other regions.
Additionally, it will start using LFP batteries made by Chinese battery giant Contemporary Amperex Technology (CATL) for the Mach-E in 2023, and the F-150 Lightning in 2024.
According to the company, these will be available alongside batteries with the existing nickel cobalt manganese (NCM) chemistry.
“Ford’s new electric vehicle lineup has generated huge enthusiasm and demand, and now we are putting the industrial system in place to scale quickly,” said Jim Farley, Ford’s president and CEO. “Our Model e team has moved with speed, focus and creativity to secure the battery capacity and raw materials we need to deliver breakthrough EVs for millions of customers.”
Going forward, Ford expects the demand for its EVs to continually grow and reach a compound annual growth rate for EVs greater than 90% by 2026.
And to further support its production goals, specifically that of producing 2 million EVs globally by later 2026, Ford said it already signed a separate non-binding memorandum with CATL to “explore a cooperation” for supplying batteries to cover its plants in China, Europe, and North America.
At the same time, Ford will continue relying on its current battery suppliers, the Korean companies LG Energy Solution and SK On, to meet its production targets.
The 600,000 EVs goal includes 270,000 Mustang Mach Es for North America, Europe and China, 150,000 F-150 Lightning units for North America, as well as 150,000 electric Transit vans in North America and Europe, and 30,000 units of a new SUV model for Europe.
As part of its announcement today, Ford also mentioned various other contracts to supply battery components and raw materials, including lithium, from sources in the United States, Australia, Indonesia, and other regions.
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