Ford boosting battery production for electric car ramp-up
Ford announced a series of initiatives Thursday to strengthen its supply of batteries and raw materials needed for electric vehicles, as the US automaker ramps up production to meet booming demand.
The company has signed contracts for battery cells to ensure it can boost output to 600,000 electric vehicles a year by the end of 2023.
Ford aims to manufacture 270,000 Mustang Mach-E SUVs, 150,000 F-150 Lightning pick-ups, 150,000 Transit vans and 30,000 units of a new SUV for Europe.
The carmaker said it has secured 70 percent of its battery capacity needs to reach a manufacturing target of two million vehicles a year by 2026.
"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 Ford president and CEO Jim Farley, who also leads the company's Model e division.
In addition to current batteries in use that are based on nickel, cobalt and manganese (NCM), Ford plans to integrate batteries based on lithium, iron and phosphate (LFP) into its production chain, Ford said in a statement.
The company signed an agreement with the Chinese firm Contemporary Amperex Technology (CATL), to supply LFP batteries for its Mustang Mach-E in North America starting next year, and for the F-150 Lightning in from 2024.
Ford also will increase purchases from its existing partners, LG Energy Solution and SK On.
In addition, the company said there are plans to have an LFP battery factory in North America with a total capacity of 40 gigawatts starting in 2026, but did not specify whether it will be its own factory or a partner's, nor its location.
The manufacturer has also strengthened its direct supply of raw materials, signing agreements with mining firms for nickel and lithium.
Shaken by Tesla and other electric vehicle start-ups, traditional automakers have accelerated the electrification of their models in recent years.
According to press reports, Ford is preparing to cut several thousand positions to cut costs to speed its transition to focus on electric vehicles.
Asked about the reports during a conference call on Thursday, Model e Vice President Lisa Drake, did not confirm the job cuts, saying only that "a smaller team can move faster than a larger team."