Ford Motor is going to provide its LFP electric vehicles with American-made batteries

Ford Motor is going to provide its LFP electric vehicles with American-made batteries

TrendForce analysts had previously suggested that the iron phosphate traction batteries had announced at yesterday's event that in time they would form two thirds of the market; Ford Motor was not left out of this trend, and was willing to provide these batteries with its electric vehicles for American assembly.

Ford Motor has already conducted research in this area, as it became known in May of this year. To introduce LFP batteries, the company is ready as part of the first generation of its electric vehicles, which are now in mass production -- these are F-150 Lightning pickups and Mustang Mach-E crossovers. This week, Vice-President Ford Motor Lisa Drake reported that from 2026, the company will be receiving LFP batteries from a new plant in the United States, which will be built and operational by then. The name of the battery supplier is not disclosed, but outside sources know that the world market leader, through the Chinese CATL, is currently searching for a site in the United States for a facility that would be able to supply traction batteries to Ford and BMW. It is expected that CATL will be able to produce up to 40 GWh annually.

The use of LFP-type batteries, according to Ford representatives, reduces the cost of materials for electric vehicles by 10-15%, and this is a significant enough gain to cover the associated loss of range. On the US market, LFP-battery electric vehicles are already being used by Tesla, and Rivian is going to provide them with commercial vans for Amazon.

Ford does not hide its plans to cooperate with CATL when it comes to the supply of electric vehicles to the United States, Europe, and China. The American autogiant seeks to maximize the location of raw materials needed for the production of traction batteries, but recognizes that the complete elimination of imports will be problematic. The partners will also work to create traction batteries with other chemicals.

The Ford representatives stated that the company now has 70 per cent supply of traction batteries that is needed to produce more than two million electric vehicles annually on the world market by 2026. The Mustang Mach-E Crossers will be equipped with LFP batteries next year, and F-150 Lightning pickups will do so a year later. By the end of next year, Ford intends to produce 600,000 electric vehicles in annual terms. Until 2026, the company is going to increase its car output by 90 per cent annually on average. To achieve these targets, $50 billion will be allocated for the supply of Ford batteries by the Korean companies LG Energy Solution and SK On, they already have businesses in the United States and are building new ones.