Ford Motor announced on Thursday that it has 100% of the battery supplies necessary to deliver electric vehicles at a rate of 600,000 per year by the end of 2023. Contemporary Amperex Technology, a Chinese battery juggernaut, will also help Ford Motor reach a rate of 2 million EVs per year by 2026 while lowering the cost of some of Ford’s most popular electric models.
Wall Street analysts and investors have questioned whether major manufacturers like Ford will be able to find the batteries and raw materials required to meet their aggressive EV sales targets. Ford made its statements as part of a bigger presentation that demonstrated how much of the necessary supplies had already been acquired.
Ford CEO Jim Farley said in a statement that “Ford’s new electric car lineup has generated enormous enthusiasm and demand, and we are now putting the industrial framework in place to expand swiftly.” To obtain the battery capacity and raw materials required to bring ground-breaking EVs to millions of customers, “Our Model e team has worked with speed, focus, and inventiveness.”
The company’s electric vehicle business is called “Ford Model.”
Ford announced that it would start selling cars equipped with Contemporary Amperex’s (CATL) less expensive lithium iron phosphate (LFP) batteries. Ford noted that while LFP batteries have a slightly lower range per pound than its existing batteries, they cost roughly 10% to 15% less and will lessen the company’s reliance on minerals like nickel, which are anticipated to be in short supply in the coming years.
Next year, Ford will start selling the Mustang Mach-E with LFP battery packs from CATL; in early 2024, the option will also be available for the F-150 Lightning.
Ford will rely on its current battery suppliers, LG Energy Solution and SK On of Korea, to help it accomplish its production goals for late 2023 and to help it reach at least 2 million EVs annually by 2026.
According to Ford, it has already acquired roughly 70% of the battery capacity required to achieve that latter objective. The automaker and CATL have agreed to a non-binding memorandum to investigate a wider partnership that might cover most of the remaining ground.