Ford Motor Co. announced several new plans for sourcing electric-vehicle batteries and raw materials for manufacturing those batteries as it moves toward its EV production targets of 600,000 by 2023 and over 2 million by 2026. It emphasized that it has secured 100% of the EV battery capacity for the first goal, and more than 70% of the battery capacity needed to meet the higher target.
Regarding EV batteries, Ford reported it is adding lithium-iron phosphate (LFP) cell chemistry to its technology portfolio, along with the previously selected nickel-cobalt-manganese (NCM) chemistry. It explained the new chemistry will increase available capacity to power EVs, and reduce reliance on scarce materials (e.g., nickel) while generating some material savings at current costs.
“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,” stated president and CEO Jim Farley.
Farley is also president of Ford Model e – the automaker’s development arm for electric-vehicle technologies, into which it has committed to invest $50 billion through 2026. “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,” he said.
Ford’s 2023 EV portfolio will include 270,000 Mustang Mach-Es (North America, Europe, and China); 150,000 F-150 Lightnings (North America); 150,000 Transit EV vans (North America and Europe); and 30,000 new SUVs for the European market.
As for battery supplies, Ford announced Contemporary Amperex Technology Co. Ltd. will provide full LFP battery packs for Mustang Mach-E models for North America starting next year, and for F-150 Lightnings in early 2024.
Ford also announced plans to establish 40 GWh of LFP production capacity in North America starting in 2026. This capacity will complement three previously announced battery plants in Kentucky and Tennessee (part of the BlueOval SK joint venture between Ford and SK On); and Ford has an additional MOU with SK On and one with Koç Holdings to create a joint venture in Turkey for expanded battery capacity there.
