Big news from Ford this week regarding its production capacity for electric models. The company says it has enough agreements in place with suppliers of EV batteries to be able to produce up to 600,000 all-electric vehicles per year worldwide by the end of 2023.
The company announced that Chinese firm Contemporary Amperex Technology will supply it with new lithium-iron phosphate batteries starting next year. This agreement is in addition to a contract with Korean company SK Innovation, under which that supplier will build batteries in a joint venture at plants to be built in Kentucky and Tennessee. Ford is also sourcing batteries from South Korean manufacturer LG Energy Solution.
Ford expects half of its global production to be electric vehicles by 2030.
And what will the 600,000 electric models built on an annual basis initially be? By Ford’s estimate, 270,000 will be Mach-E Mustangs built for North America, Europe and China, and another 150,000 F-150 Lightning pickups for North America. The total also includes 150,000 Transit vans for North America and Europe, and 30,000 units of a new SUV for Europe.
Lithium-iron phosphate batteries reduce the use of rare minerals such as nickel, according to Ford, reducing material costs by 10 to 15 percent compared to the nickel-cobalt-manganese batteries currently in use.
Ford also announced several other contracts to receive battery components and raw materials, including lithium, from suppliers in the United States, Australia, Indonesia and elsewhere.
And the company doesn't plan to stop there. Ford wants to make two million electric vehicles a year by 2026.