Ford Secures 100% Of Annual Battery Cell Capacity Needed To Deliver 600,000 EV Run Rate By Late 2023

Ford (F) announced a series of initiatives for sourcing battery capacity and raw materials to reach its targeted annual run rate of 600,000 electric vehicles by late 2023 and more than 2 million by the end of 2026. The company has secured 100% of the annual battery cell capacity needed - 60 gigawatt hours - to support this 600,000 EV run rate by working with leading battery companies around the globe. Ford now has sourced approximately 70% of the battery cell capacity it needs to support an annual global run rate of more than 2 million EVs by late 2026.

Ford said the company is adding lithium iron phosphate cell chemistry to its portfolio, alongside its existing nickel cobalt manganese chemistry. The company also announced that Contemporary Amperex Technology Co., Ltd. will provide full LFP battery packs for Mustang Mach-E models for North America starting next year as well as F-150 Lightnings in early 2024. It is also leveraging long-standing connection with LG Energy Solution and its strategic relationship with SK On to meet its battery capacity target for late 2023.

Ford and CATL have signed a non-binding MOU to explore a cooperation for supplying batteries in Ford's markets across China, Europe and North America. Ford also plans to localize and use 40 GWh of LFP capacity in North America starting in 2026.

Also, to support the joint ventures, Ford is direct-sourcing battery cell raw materials. The company has sourced most of the nickel needed through 2026 and beyond. Ford has signed non-binding MOUs with: Vale Canada Ltd., PT Vale Indonesia and Huayou Cobalt, and BHP. The targeted multi-year agreement with BHP for nickel supply from BHP's Nickel West operations in Australia could start as early as 2025.

The company also has entered several key lithium contracts. Ford announced a non-binding MOU with Rio Tinto, exploring a significant lithium off-take agreement from its Rincon project in Argentina. Ford will explore becoming the foundation customer for Rio Tinto's Rincon lithium project in Argentina.

Ford noted that it plans to invest over $50 billion in EVs through 2026, targeting total company adjusted EBIT margins of 10% and 8% EBIT margins for EVs by 2026.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
The U.S. Food and Drug Administration said it now intends to review only a small subset of new emergency use authorization or EUA requests for diagnostic tests. As per an updated COVID-19 test policy with a view to ensure continued access to tests, the regulator further urged developers of all test types seeking marketing authorization to pursue traditional premarket review for most test types. Netflix, Inc. said it is adding a new feature to offer a more personalized mobile games experience on the platform. In a statement, Sophia Yang, Product Manager, Mobile Games, said the company is rolling out the ability to create game handles, with which members will be able to create a unique public username. This can be used across all Netflix games. General Motors Co. has delayed its plan to require employees to return to office many days a week until next year, reports said citing an internal memo signed by CEO Mary Barra. Last week, the company had announced that corporate workers would be required to return to respective offices at least three days a week, beginning later this year, as the COVID-19 pandemic eases.
Follow RTT