With an eye on a strong demand In the future, Ford has announced that it will add a new battery chemistry for your electric cars. Specifically, the supply of 60GWh of battery capacity by the end of 2023, which corresponds to a production of 600,000 cars annual electric and two million of units by the end of 2026. The Mustang Mach-E, F-150 Lightning and e-Transit will have the option to mount CATL LFP batteries, without modules, in addition to current NCM chemistry
The company detailed its plans to secure a supply of batteries to support the production targets set out in its Ford+ plan. The American manufacturer expects the annual growth rate of electric vehicles exceed 90% by 2026more than double the growth forecast for the global market.
The manufacturer announces that it will add batteries with lithium ferrophosphate (LFP) chemistry to its portfolio. This technology, despite offering slightly less energy density, also ensures that your customers will have an electric vehicle with minimal range loss, since these batteries suffer less degradation. Ford maintains the current ones, with NCM nickel-rich ternary chemistry (nickel, cobalt and manganese).
It also reduces its dependence on scarce critical minerals such as nickel and, apart from price variability, generating 10-15% material savings for batteries compared to NCM. Adding this second option increases the production capacity needed to cover the high demand for its electric cars.
600,000 electric cars in 2023
By working with the world’s leading battery companies, the company has confirmed that it has secured 100% of the annual battery capacity it needs, 60GWh that supports your plans produce 600,000 electric cars by the end of 2023.
The 600,000 electric vehicles that Ford plans to manufacture by the end of 2023 consist of 270,000 Mustang Mach E’s for North America, Europe and China, 150,000 F-150 Lightnings for North America and 150,000 e-Transit for North America and Europe. In addition are added 30,000 units of an all-new SUV for Europewhose execution rate will increase significantly in 2024
Among the suppliers, Ford confirmed CATL (Contemporary Amperex Technology) as one of the most important. The Chinese company will provide the LFP batteries for Mustang Mach-E models sold in North America starting next year, and for the F-150 Lightning electric pick-up in early 2024. Ford electrical architecture flexibility allows the incorporation of LFP technology with prismatic cells and without modules (CTP) of CATL. This advantage gives you the ability to scale production to meet customer demand.
Ford also maintains its collaboration with other other manufacturers with which it has already worked, LG Energy Solutions (LGES). The Koreans are long-time suppliers to the firm and it has rapidly scaled up production to double capacity at its Wroclaw, Poland, facility. From there, it supports the production increases of NCM cells for the Mustang Mach-E and the E-Transit electric van.
It also maintains its strategic relationship with SK Onwhich has production capacity already in place to support Ford’s high-volume F-150 Lightning and E-Transit scale-up through the end of 2023, increasing NCM cell production beyond previously planned levels from its production facilities. Atlanta and supplying new battery cell capacity from its factory in Hungary.
“Ford’s new line of electric vehicles has generated tremendous excitement and demand, so we are implementing the industrial system to rapidly scale production,” said Jim Farley, Ford chairman and chief executive officer and president of Ford Model. e, the company spun off from the generic firm to market its electric cars. “The Model e team has moved with speed, focus and creativity to secure the battery capacity and raw materials we need to deliver innovative electric vehicles to millions of customers,” adds Farley.
Ford will invest more than 50,000 billion dollars in electric vehicles by 2026. More than half of its global production will be electric vehicles by 2030 with the goal of achieving global carbon neutrality by 2050. To achieve this, the new supply chain it needs to create will uphold its commitments to carbon neutrality. sustainability and human rights.
Two million electric cars in 2026
Based on its linked agreements to reach 600,000 electric cars by 2023, the oval shape goes even further. So far he has obtained 70% of battery capacity you need to support an annual global growth rate that leads you to produce more than two million electric vehicles by the end of 2026.
Ford and CATL, the world’s largest battery producer, have signed a separate non-binding memorandum of understanding to explore a battery supply cooperation in Ford’s markets in China, Europe and North America.
Ford also announced that it plans locate and use another 40 GWh of LFP battery capacity in North America beginning in 2026. This additional capacity will be used to supplement the three announced battery plants in Kentucky and Tennessee that are part of the BlueOval SK joint venture between Ford and SK On, officially created last week. Ford has signed an additional memorandum of understanding with SK On and Koç Holdings to create a joint venture in Turkey to expand battery cell production capacity there.