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Ford EVs Likely Got More Expensive Due To Lithium Price Surge

Over the past few months, Ford has been working to secure the raw materials it needs to ramp up EV production, forging deals with a wide variety of companies across the globe and forming its own joint venture with SK On dubbed BlueOvalSK that will focus on EV battery production. In spite of these efforts, supply chain issues and inflation have led to rapidly rising materials costs, which also prompted The Blue Oval to raise the prices of the Ford Mustang Mach-E by $2,600-$8,100 and the Ford F-150 Lightning by between $6,000-$8,500, depending on trim and configuration. As Bloomberg is reporting, those significant cost increases can likely be blamed on soaring lithium prices.

As of Friday, the price of lithium – a key component in many EV batteries – reached a new record high in China of 500,500 yuan ($71,315 USD), more than triple the cost of that particular material versus one year ago. According to the report, these surges can be blamed on skyrocketing demand, coupled with production disruptions and China’s ongoing power crisis that prompted government officials to cut electricity use for two weeks back in August.

“EV production and sales have held steady in recent months,” said research firm Rystad Energy. “This could lead to new power shortages and hit lithium operations.” Rystad expects current pricing to stay around its current level at least through the end of the year, even though Chinese officials recently met with a number of companies and asked them to keep prices stable. Regardless, as automakers scramble to secure lithium as each works to ramp up EV production, demand figures to remain high for the foreseeable future.

Meanwhile, Ford CEO Jim Farley recently stated that he doesn’t see an end to the supply chain issues the automaker is currently facing. Instead, the company is focusing on navigating problems as they arise, such as securing sourcing materials from a wide variety of suppliers.

We’ll have more on the state of EV battery raw materials pricing 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. Jim Glass

    This is bad news for the near future of EVs. As the price rises, fewer folks will buy EVs perhaps slowing the investment in charging infrastructure. I purchased a MME First Edition and love the car but don’t know what the future holds. Now I’ll be less likely to trade up in a few years. Even new MMEs are less equipped than my car even though the prices are higher.

    Reply
  2. David Dickinson II

    I say again, the federal government is creating an EV fiasco by rushing a forced adoption. The artificial deadlines are causing price spikes for finite materials. I know Econ 101 is beyond the current administration, but when you dramatically increase demand through regulation, the prices go up accordingly. Slow down and make the transition gradually.

    Reply
  3. Robert.Walter

    Rising prices mean more entrants into the extraction and refining segments.

    Then comes saturation and with increased competition prices will come down.

    It’s in everybody’s best interest for the majority of our vehicle transport fleet to move off carbon fueled ICE propulsion.

    Just as it did with aircraft and airlines, rural electrification, mass communications, the interstate highway system, etc. the government acting as an incubator, supporting the transition to these technologies quicker is in all of our long term interests.

    Reply
    1. BADIH JOHN MAJDALANI

      These so-called entrants will require an investment of billions of dollars to enter this field. The only way that’s possible is through government subsidies or taxpayers’ dollars, unless the Saudi Government or other foreign governments subsidizes these projects, this scenario is not likely to happen.

      Reply
      1. Robert.Walter

        It will happen because it is happening.

        Reply
  4. BADIH JOHN MAJDALANI

    This is good news that EVs will even be more expensive and pricewise out of the reach of 99% of consumers. America’s crumbling roads will crumble at a faster rate due EVs being up to 1,000 lbs. heavier than identical ICE vehicles. I hope the price of the cheapest EVs reaches $150,000 sooner than later.

    Reply
    1. Robert.Walter

      These are the talking points of big oil.

      Why wouldn’t you hope that things will improve and prices will come down?

      Are you invested in carbon fuels or something?

      Reply
      1. BADIH JOHN MAJDALANI

        Latest news from GM, replacing both taillights on a GM Hummer EV is $6,100, and over $7,500 when you factor in labor and sales tax. Are you okay with that? While the costs will be less in other EVs, it will still be more than replacing the taillights of an ICE vehicle,

        Reply
  5. Mike

    Come on, the price increase is probably to take advantage of some new green bs tax break. Since Ford is so far up Biden’s …., I’m sure they know what’s coming. Why not, the last increase was. I’m going to have to buy one of these useless appliances just to get the tax credit and flip it. It’s bs that I keep helping other people pay for their appliances.

    Reply

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