Ford announced that it will import some more affordable lithium-iron or LFP batteries from CATL to produce electric pickup trucks and SUVs at a more affordable price for consumers. This strategy comes as a part of the plan by Ford to beat Tesla, the leading brand in the global electric vehicle market.
Ford is also aiming to secure and materials into the next decade by signing a list of deals with the battery producers. The conventional lithium-ion batteries that are largely used in electric vehicles have been gaining more momentum. The LFP batteries are also claimed to offer more energy density, better performance, better range, and be more viable economically.
Lisa Drake, vice president of Ford, said the company plans to secure LFP batteries from a new 40 GWh factory in North America starting its operations in 2026. She did not say of the factory will be built by CATL, and added that she will not say that they have 100 percent confidence that all of these products can be localized.
Ford said using LFP batteries can also result in a cost reduction of 10 percent to 15 percent, which will help it to offer electric vehicles at a more affordable price. Currently, Tesla is offering LFP batteries in some low-priced Model 3 sedans in the United States.
Ford claims that it is aiming for 8 percent pretax profit margins on the company’s electric vehicles by 2026, and Ford also claimed that its electric vehicle business is not profitable yet.
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