Ford introduced a sequence of initiatives for sourcing battery capability and uncooked supplies that gentle a transparent path to achieve its focused annual run fee of 600,000 electrical automobiles by late 2023 and greater than 2 million by the top of 2026.
The corporate detailed its international automobile portfolio plans supporting these manufacturing targets as a part of its Ford+ plan. Ford expects a compound annual progress fee for EVs to exceed 90% by means of 2026, greater than double forecasted international trade progress.
Ford plans to take a position greater than $50 billion in EVs by means of 2026, concentrating on complete firm adjusted EBIT margins of 10% and eight% EBIT margins for EVs by 2026.
As Ford creates a brand new EV provide chain that upholds its commitments to sustainability and human rights, the corporate continues to plan for greater than half its international manufacturing to be EVs by 2030 and attaining carbon neutrality globally no later than 2050.
Ford plans to achieve a 600,000 international EV run fee by late 2023 with the next EVs:
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270,000 Mustang Mach-Es for North America, Europe and China
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150,000 F-150 Lightnings for North America
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150,000 Transit EVs for North America and Europe
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30,000 items of an all-new SUV for Europe, the run fee of which can considerably ramp in 2024
Ford is including lithium iron phosphate (LFP) cell chemistry to its portfolio, alongside its current nickel cobalt manganese (NCM) chemistry. This creates much more capability for high-demand merchandise and offers prospects a few years of operation with minimal vary loss. It additionally reduces the reliance on scarce important minerals resembling nickel and, at present prices, brings a ten to fifteen% invoice of fabric financial savings for Ford versus NCM batteries.
The corporate confirmed it has secured 100% of the annual battery cell capability wanted—60 gigawatt hours (GWh)—to help this 600,000 EV run fee by working with main battery firms across the globe.
Ford introduced that Up to date Amperex Know-how Co., Ltd. (CATL) will present full LFP battery packs for Mustang Mach-E fashions for North America beginning subsequent yr in addition to F-150 Lightnings in early 2024. Ford’s EV structure flexibility permits environment friendly incorporation of CATL’s prismatic LFP cell-to-pack expertise, delivering incremental capability shortly to scale and meet buyer demand.
Ford is also leveraging its long-standing reference to LG Power Answer (LGES) and its strategic relationship with SK On to fulfill its battery capability goal for late 2023.
Lengthy-time provider LGES has scaled shortly and doubled its capability at its Wroclaw, Poland, facility to help incremental NCM cell manufacturing for Mustang Mach-E and E-Transit fashions.
Plus, SK On has put in capability to help the scaling of Ford’s high-volume F-150 Lightning and E-Transits by means of late 2023—scaling NCM cell manufacturing past earlier-planned ranges from its Atlanta facility and offering new battery cell capability from its Hungary operation.
Driving to greater than 2 million EVs by late 2026. Ford is constructing on agreements tied to its 600,000 run fee milestone and is taking them even additional. The corporate now has sourced roughly 70% of the battery cell capability it must help an annual international run fee of greater than 2 million EVs by late 2026.
Ford and CATL—the world’s largest battery producer—have signed a separate non-binding MOU to discover a cooperation for supplying batteries in Ford’s markets throughout China, Europe and North America.
Ford additionally introduced it plans to localize and use 40 GWh of LFP capability in North America beginning in 2026.
The corporate intends to make use of this extra capability to enrich three beforehand introduced battery crops in Kentucky and Tennessee which are a part of the BlueOval SK three way partnership between Ford and SK On, which was formally shaped final week. Ford has signed an extra MOU with SK On in addition to Koç Holdings to create a three way partnership in Turkey for expanded battery capability there.
To help its joint ventures, Ford is direct-sourcing battery cell uncooked supplies as properly.
Right now, the corporate introduced it’s working with main mining collaborators and has sourced a lot of the nickel wanted by means of 2026 and past. Ford has signed non-binding MOUs with:
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Vale Canada Ltd.: To discover potential alternatives throughout the EV worth chain.
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PT Vale Indonesia and Huayou Cobalt: For exploring a three-way nickel processing undertaking and, individually, an off-take settlement with Huayou that collectively will present Ford with rights to the equal of 84 kilotons every year (ktpa) of nickel.
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BHP: For nickel provide from BHP’s Nickel West operations in Australia. The focused multi-year settlement may begin as early as 2025 and will contain further commodities over time.
Ford additionally has locked a number of key lithium contracts. Past the lately introduced key asset in Western Australia secured by means of Liontown Assets, Ford additionally has signed a non-binding MOU with Rio Tinto, exploring a big lithium off-take settlement from its Rincon undertaking in Argentina. That is a part of a multi-metal MOU that leverages the dimensions of Ford’s aluminum enterprise and features a potential alternative on copper.
Ford additionally continues working to localize processing of key battery supplies in North America. To that finish, the corporate is saying:
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EcoPro BM and SK On: Have signed a non-binding Letter of Intent with Ford to ascertain a cathode manufacturing facility in North America.
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ioneer: Has signed a binding off-take settlement with Ford for lithium carbonate from ioneer’s Rhyolite Ridge undertaking in Nevada to help EV manufacturing past 2025.
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Compass Minerals: Has signed a non-binding MOU for lithium hydroxide and lithium carbonate from its Utah operations on the Nice Salt Lake.
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Syrah Assets and SK On: Have signed a non-binding MOU to safe off-take for pure graphite from its processing web site in Vidalia, Louisiana.
