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Ford To Double EV Investment To $22 Billion Through 2025

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The automotive industry is driving head-on into the electric vehicles arena, and Ford refuses to finish last in what is fast becoming a race to replace internal combustion powered vehicles with battery electric models. As such, the company has just announced its intention to devote significantly more money towards that goal. Specifically, Ford plans to invest $22 billion into electric vehicle research and development through 2025 – a figure that doubles the amount it previously committed towards the endeavor.

Ford officially announced this pivot when sharing its Q4 2020 earnings and performance, where it also outlined what it plans to do in regards to electrification. Basically, Ford plans to double its previous $11.5 billion EV investment to a stout $22 billion through 2025, extending its multi-billion dollar expenditure by three additional years. As Ford Authority reported back in June of 2020, the automaker envisioned spending the original $11.5 billion amount through 2022.

“We are accelerating all our plans – breaking constraints, increasing battery capacity, improving
costs and getting more electric vehicles into our product cycle plan,” Farley said. “People are
responding to what Ford is doing today, not someday,” said Ford CEO Jim Farley.

At the moment, it is unclear exactly how this changes or modifies previous Ford plans to devote more resources towards electrification, but we do know that The Blue Oval has started to shake things up internally when it comes to product planning and development. A potential Ford Thunderbird revival and a slew of other EV models are part of this faster transition away from gasoline powered vehicles, which has recently accelerated with the cancellation of many legacy ICE products at Ford.

The timing of Ford’s declaration comes roughly one week after its cross-town rival, General Motors, announced its own EV investment pledge and transition timeline, when the company stated its intention to become carbon neutral by 2040 – one decade ahead of what Ford promised it would do last year. That statement dominated headlines and perked up ears at Wall Street, which might help explain why Farley felt the need to more explicitly state what Ford intends to do by the end of this decade.

Near term, Ford is steadily ramping up production of the 2021 Ford Mustang Mach-E and putting the final touches on the 2022 Ford E-Transit. The Ford F-150 Electric arrives next year, although the 2021 F-150 is already partially electrified via the Ford Powerboost 3.5L V6 engine.

We’ll continue bringing you the latest about Ford’s electrification plans, so subscribe to Ford Authority for the latest Ford business news and around-the-clock Ford news coverage.

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Written by Edward Snitkoff

Ed owns a 1986 Ford Taurus LX, and he routinely daydreams about buying another one, a fantasy that may someday become a reality.

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8 Comments

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  1. 22 BILLION. My god. Where is this money coming from? Is Ford really that profitable? I wonder how their under paid employees feel about this electric fantasy. This coming from a company that put toxic window washer fluid into their Police packages.

  2. While I don’t think it’s fair that car companies are forcing EV down everyone’s throat, I get that we’re trying to go for a carbon neutral situation. I’ve said before the first focus should be converting all commercial and residential buildings to power sourced by solar, wind farming or hydro-electricity. Secondly replacing off shore drilling with off-shore wind farms and creating more energy dams in rivers so that local areas would benefit from that kind of stuff. Next would be to convert all fleet vehicles to fully electric because they always have somewhere to be plugged in and charged over night. For the general public, you’re going to need to convert nearly every mall and super market parking lot into solar powered charging stations along with having a wind generator in the center of larger malls to assist with powering these buildings and parking lots. The money spent towards electrification of vehicles needs to also go to the country’s infrastructure to add actual charging lanes on highways and all emergency routes which would mean highways and roads would need to be completely redone and solar heated year-round to ensure they wont receive damage from plow vehicles or salt. Once this is done then focus on electric vehicles for the general public because now to world will be set up for electric cars to move freely about the country. Another thing that Gen 2 electric vehicles are going to need are transmissions and the switch from lithium ion batteries to Sodium-Ion batteries coupled with Ultra Capacitors for cleaner, better power.

  3. I mentioned above about what all needs to change for this carbon-neutral world to really push forward but I don’t think I’m alone in being skeptical about this new wave of electric cars in terms of the cars themselves. I’m a performance enthusiast and what I’ve seen of electric cars up to this point is absolutely boring (minus the Mach E RTR 1400 variant and the Cobra Jet 1400E). Electric cars are truly bland and boring. It’s not the power that is the issue, it is the lack of soul electric vehicles have along with the styling. I love the thought of large LCD touch screens and digital dashboards, but the afterthought, miminamalistic look doesn’t work on a performance vehicle. This is where Ford truly messed up on the Mach E. Although I’m not certain, I truly feel that even with this electric push, Ford is going to give birth to a Mustang Sub-brand, a Bronco Sub-Brand and an F-Series Brand which will push out the Expedition, the Explorer and some of the rest of the crossover type vehicles, especially when this new Fusion/Mondeo thing hits the scene. To me, what makes sense is that Ford said that the next generation mustang will use parts from the CD6 platform in this next car and I believe that will still hold true in alot of ways. The Mustang family will grow with a coupe, a 4-door car, and what I believe will be a gen-2 variant of the Mach E which will have 2- different body styles Similar to what BMW, Porsche and Mercedes do with their coupe and standard versions of their crossovers. Hopefully, If ford is smart, performance options, Automatic/DCT transmissions, sound options, styling options and other things will be available for the Mustang family. The Bronco family will grow with a full size version to do battle with the GMC Hummer along with having the regular Bronco and the Bronco Sport. Like the Mustang Family, Ford will need to offer transmissions and options for these vehicles as well. The Ranger and Courier will more than likely get drawn in to the F-Series family and hopefully we get an F150 Lightning, Atlas, Tremor and Raptor variant. Of course this is all hopes and some speculations from reading alot of the stuff that has been all over the internet about the next gen mustangs and the push for electrification but it would make electric vehicles from Ford much more appealing.

  4. While all this media about moving to electric is great, I’ve yet to see how this or any other industry is going to handle the eventual recycling of the battery packs. There’s a whole new industry waiting for someone or some group to figure out how to reconstitute the rare earth minerals used in these lithium-ion constructs and provide the raw materials back to battery pack manufacturers for reconstruction. Hello…is anyone working on this? I surely hope so, or we’re going to have a big problem on our hands…

    • Both LG Chemical and Panasonic have active recycling programs for their products. BTW, are you sure your lead acid battery is recycled?

  5. Those unión employees are paid very well, and make more money than you do in the same time. Ford has real cash, unlike Tesla who has humongous loans, and can afford to invest more in technology.

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