As is the case with other parts of the world, Ford China has been largely focused on crossovers and electric vehicles in recent months. The Ford Territory EV has been on sale in China for a couple of years now, while Changan Ford – a 50:50 joint venture between Changan Automobile and Ford Motor Company – produces the Ford Mustang Mach-E locally in China for local customers and sells the EV crossover at dedicated stores. Now, Ford China has announced that it will source batteries for its electrified vehicles from CATL – China’s largest battery manufacturer – in addition to its existing supplier in that market, BYD, according to CLS News.
Ford reached an agreement with BYD back in 2020 and is already using its batteries in electrified vehicles on sale in China including the Ford Escape PHEV and Mustang Mach-E. Ford was the first international automotive manufacturer to use BYD batteries in its vehicles, but as FoMoCo continues its EV push, it needs a broader base of battery suppliers at hand as it develops its next-generation battery range dubbed IonBoost.
Across the globe, BYD and CATL are just two of the battery suppliers currently being utilized by Ford, a group that also includes SK Innovation – which is rapidly expanding its operations in China – LG Energy Solution, and Panasonic. Ford and SK Innovation recently formed a battery production joint venture called BlueOvalSK, and both have also partnered with solid battery manufacturer Solid Power as that technology promises a number of advantages over existing lithium-ion batteries.
Scaling up battery production is a key component of Ford’s plan to double its planned annual global EV production to 600,000 units by 2024, as it will help drive costs down and make EVs more affordable.