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Ford CEO Farley Says EV Battery Raw Material Costs To Remain High

Last month, Ford revealed a new EV battery master plan outlining all of the ways it has worked to secure enough raw materials to build 600,000 all-electric vehicles worldwide by the end of 2023. While the automaker is prioritizing its joint-venture with SK On – BlueOvalSK – it’s also looking to secure raw materials and batteries from a variety of suppliers, including lithium-iron phosphate (LFP) batteries for the Ford Mustang Mach-E crossover and Ford F-150 Lightning pickup. Regardless, the cost of the raw materials used in EV battery production continues to rise, recently prompting Ford to raise the price of the 2023 F-150 Lightning significantly. As Ford CEO Jim Farley recently explained, he doesn’t expect the cost of these raw materials to go down anytime soon, according to CNBC.

“I don’t think there’s going to be much relief on lithium, cobalt, and nickel anytime soon,” Farley said. “I don’t think we should be confident in any other outcomes, other than an increase in prices. That’s why we think LFP technology is critical. We want to make these  affordable.”

LFP batteries don’t use nickel or cobalt in their construction, making them easier to source materials for, as well as less expensive. LFP batteries are also safer, though less energy-dense than the traditional lithium-ion batteries that are currently used in the Mach-E and F-150 Lightning. The Mach-E will begin utilizing LFP batteries in 2023, with the F-150 Lightning following suit in 2024.

Meanwhile, Ford is also investing heavily in solid-state battery technology via a startup dubbed Solid Power, which shows a lot of promise in terms of offering more range, shorter charging times, and a lower fire risk. Solid Power is set to deliver a prototype battery to Ford for testing purposes by the end of the year, but a production version is likely still years away from becoming a reality.

We’ll have more on EV battery costs soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. Joe

    Yes save a few dollars at the pump so you can spend 60 to 80K for a EV. You won’t be braking even anytime soon.

    Reply
  2. Ford Owner

    Lithium iron phosphate (LFP) cells and batteries will race all the other chemistries because it is safer, cheaper, can charge to 100% witjout damage, withstands more charging cycles, does not heat up, and will not react if punctured. All of the EV manufacturers, including Tesla, GM, and Ford , will switch over to LFP. The only down point is its energy density as it is a heavier chemistry per cell, and each cell only reaches 3.3 V while the other lithium-ion cell can reach 4.2 V. So you need more cells in series per battery. But safety and long life is more important than energy density and range. In conclusion, new EVs will have lesser range but their batteries will last longer and be safer.

    Reply
  3. Tigger

    Lesser range than an ICE vehicle is one of the main issues that turn many off to EVs. Offering even less range and a heavier vehicle will not endear those folks to EVs.

    Reply

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