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Ford Motor today announced a series of schemes for sourcing battery capacity and raw materials that it claims will allow it 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 also explained its global vehicle portfolio plans supporting these production goals as part of its Ford+ plan. Ford expects a compound annual growth rate for EVs to exceed 90% through 2026, more than double mainstream forecast global industry growth.
Center for Automotive Research data show that Ford is only one maker in the crowd as automakers invest billions in north American EV and battery manufacturing facilities. For almost two decades, the CAR Automotive Communities Partnership (ACP) has tracked announced automotive manufacturing investments in North America.
The ACP Book of Deals investment database shows the sector’s commitment to the transformation. According to data collected for the Book of Deals, in 2021, automakers announced $36 billion of investments to build facilities dedicated to manufacturing EVs and batteries. “In the first five months of 2022, automakers announced $24 billion in EV-related investments, almost double the investments announced by the same time last year,” CAS said.
“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 Jim Farley, Ford’s president and CEO and president of Ford Model e. “Our Model e team has moved with speed, focus and creativity to secure the battery capacity and raw materials we need to deliver breakthrough EVs for millions of customers.”
Ford 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. Ford said today that lithium iron phosphate battery packs are coming for Mustang Mach-Es sold in North America next year and F-150 Lightnings in early 2024, creating more capacity for what are at the moment are hot, in-demand products.
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Ford plans to reach a 600,000 global EV run-rate by late 2023 with the following EVs:
- 270,000 Mustang Mach-Es for North America, Europe and China
- 150,000 F-150 Lightnings for North America
- 150,000 Transit EVs for North America and Europe
- 30,000 units of an all-new SUV for Europe, whose run rate will significantly ramp in 2024
Ford is adding lithium iron phosphate (LFP) cell chemistry to its portfolio, alongside existing nickel cobalt manganese (NCM) chemistry. This creates more capacity for high-demand products and provides customers many years of operation with minimal range loss. It also reduces the reliance on scarce critical minerals such as nickel and, at current costs, brings a 10 to 15% bill of material savings for Ford versus NCM batteries.
The company confirmed it has secured 100% of the annual battery cell capacity needed – 60 gigawatt hours (GWh) – to support this 600,000 EV run rate by working with leading battery companies around the globe.
Ford announced that Contemporary Amperex Technology Co., Ltd. (CATL) 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. Ford’s EV architecture flexibility allows efficient incorporation of CATL’s prismatic LFP cell-to-pack technology, delivering incremental capacity quickly to scale and meet customer demand.
Ford also is leveraging its long-standing connection with LG Energy Solution (LGES) and its strategic relationship with SK On to meet its battery capacity target for late 2023.
Long-time supplier LGES has doubled its capacity at its Wroclaw, Poland, facility to support incremental NCM cell production for Mustang Mach-E and E-Transit models. SK On has installed capacity to support the scaling of Ford’s high-volume F-150 Lightning and E-Transits through late 2023 – scaling NCM cell production beyond earlier-planned levels from its Atlanta facility and providing new battery cell capacity from its Hungary operation.
More Than 2 million EVs by late 2026?
Ford also said it is building on agreements tied to its 600,000 run-rate milestone but is taking them further. The company 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 and CATL – the world’s largest battery producer – have signed a separate non-binding MOU to explore a cooperation for supplying batteries in Ford’s markets across China, Europe and North America.
- Ford also announced it plans to localize and use 40 GWh of LFP capacity in North America starting in 2026. The company intends to use this additional capacity to complement three previously announced battery plants in Kentucky and Tennessee that are part of the BlueOval SK joint venture between Ford and SK On, which was officially formed last week. Ford has signed an additional MOU with SK On as well as Koç Holdings to create a joint venture in Turkey for expanded battery capacity there.
Ford is Direct-Sourcing Battery Cell Raw Materials too.
“Our team has been actively engaged with partners in the United States and around the world,” said Lisa Drake, Ford Model e vice president, EV Industrialization. “We will move fast in the key markets and regions where critical supplies are available, meeting with government officials, mining companies and processors and signing MOUs and agreements that reflect Ford’s ESG expectations and underpin Ford’s plan to bring EVs to millions.”
Today, the company announced it is working with major mining collaborators and has sourced most of the nickel needed through 2026 and beyond. Ford has signed non-binding MOUs with:
- Vale Canada Ltd. to explore potential opportunities across the EV value chain.
- PT Vale Indonesia and Huayou Cobalt for exploring a three-way nickel processing project and, separately, an off-take agreement with Huayou that collectively will provide Ford with rights to the equivalent of 84 kilotons per annum (ktpa) of nickel.
- BHP for nickel supply from BHP’s Nickel West operations in Australia. The targeted multi-year agreement could start as early as 2025 and may involve additional commodities over time.
Ford also several key contracts. Beyond the recently announced key asset in Western Australia secured through Liontown Resources, Ford also has signed a non-binding MOU with Rio Tinto, exploring a significant lithium off-take agreement from its Rincon project in Argentina. This is part of a multi-metal MOU that leverages the scale of Ford’s aluminum business and includes a potential opportunity on copper.
Ford working to localize processing of key battery materials in North America.
EcoPro BM and SK On: Have signed a non-binding Letter of Intent with Ford to establish a cathode production facility in North America.
ioneer (sic): Has signed a binding off-take agreement with Ford for lithium carbonate from ioneer’s Rhyolite Ridge project in Nevada to support EV production beyond 2025.
Compass Minerals: Has signed a non-binding MOU for lithium hydroxide and lithium carbonate from its Utah operations on the Great Salt Lake.
Syrah Resources and SK On: Have signed a non-binding MOU to secure off-take for natural graphite from its processing site in Vidalia, Louisiana.
EV Battery Gold Rush: Ford Has New Battery Capacity Plan
Click to Enlarge.
Ford Motor today announced a series of schemes for sourcing battery capacity and raw materials that it claims will allow it 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 also explained its global vehicle portfolio plans supporting these production goals as part of its Ford+ plan. Ford expects a compound annual growth rate for EVs to exceed 90% through 2026, more than double mainstream forecast global industry growth.
Center for Automotive Research data show that Ford is only one maker in the crowd as automakers invest billions in north American EV and battery manufacturing facilities. For almost two decades, the CAR Automotive Communities Partnership (ACP) has tracked announced automotive manufacturing investments in North America.
The ACP Book of Deals investment database shows the sector’s commitment to the transformation. According to data collected for the Book of Deals, in 2021, automakers announced $36 billion of investments to build facilities dedicated to manufacturing EVs and batteries. “In the first five months of 2022, automakers announced $24 billion in EV-related investments, almost double the investments announced by the same time last year,” CAS said.
“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 Jim Farley, Ford’s president and CEO and president of Ford Model e. “Our Model e team has moved with speed, focus and creativity to secure the battery capacity and raw materials we need to deliver breakthrough EVs for millions of customers.”
Ford 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. Ford said today that lithium iron phosphate battery packs are coming for Mustang Mach-Es sold in North America next year and F-150 Lightnings in early 2024, creating more capacity for what are at the moment are hot, in-demand products.
Click to Enlarge.
Ford plans to reach a 600,000 global EV run-rate by late 2023 with the following EVs:
Ford is adding lithium iron phosphate (LFP) cell chemistry to its portfolio, alongside existing nickel cobalt manganese (NCM) chemistry. This creates more capacity for high-demand products and provides customers many years of operation with minimal range loss. It also reduces the reliance on scarce critical minerals such as nickel and, at current costs, brings a 10 to 15% bill of material savings for Ford versus NCM batteries.
The company confirmed it has secured 100% of the annual battery cell capacity needed – 60 gigawatt hours (GWh) – to support this 600,000 EV run rate by working with leading battery companies around the globe.
Ford announced that Contemporary Amperex Technology Co., Ltd. (CATL) 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. Ford’s EV architecture flexibility allows efficient incorporation of CATL’s prismatic LFP cell-to-pack technology, delivering incremental capacity quickly to scale and meet customer demand.
Ford also is leveraging its long-standing connection with LG Energy Solution (LGES) and its strategic relationship with SK On to meet its battery capacity target for late 2023.
Long-time supplier LGES has doubled its capacity at its Wroclaw, Poland, facility to support incremental NCM cell production for Mustang Mach-E and E-Transit models. SK On has installed capacity to support the scaling of Ford’s high-volume F-150 Lightning and E-Transits through late 2023 – scaling NCM cell production beyond earlier-planned levels from its Atlanta facility and providing new battery cell capacity from its Hungary operation.
More Than 2 million EVs by late 2026?
Ford also said it is building on agreements tied to its 600,000 run-rate milestone but is taking them further. The company 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 is Direct-Sourcing Battery Cell Raw Materials too.
“Our team has been actively engaged with partners in the United States and around the world,” said Lisa Drake, Ford Model e vice president, EV Industrialization. “We will move fast in the key markets and regions where critical supplies are available, meeting with government officials, mining companies and processors and signing MOUs and agreements that reflect Ford’s ESG expectations and underpin Ford’s plan to bring EVs to millions.”
Today, the company announced it is working with major mining collaborators and has sourced most of the nickel needed through 2026 and beyond. Ford has signed non-binding MOUs with:
Ford also several key contracts. Beyond the recently announced key asset in Western Australia secured through Liontown Resources, Ford also has signed a non-binding MOU with Rio Tinto, exploring a significant lithium off-take agreement from its Rincon project in Argentina. This is part of a multi-metal MOU that leverages the scale of Ford’s aluminum business and includes a potential opportunity on copper.
Ford working to localize processing of key battery materials in North America.
EcoPro BM and SK On: Have signed a non-binding Letter of Intent with Ford to establish a cathode production facility in North America.
ioneer (sic): Has signed a binding off-take agreement with Ford for lithium carbonate from ioneer’s Rhyolite Ridge project in Nevada to support EV production beyond 2025.
Compass Minerals: Has signed a non-binding MOU for lithium hydroxide and lithium carbonate from its Utah operations on the Great Salt Lake.
Syrah Resources and SK On: Have signed a non-binding MOU to secure off-take for natural graphite from its processing site in Vidalia, Louisiana.