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Ford CEO Farley Says IRA Will Greatly Benefit Company, Partners

Ford is in the midst of a major electrification push, one that involves a massive investment of $50 billion as the automaker works to reach its goal of selling two million EVs annually by 2026. However, one key to reaching that particular goal hinges on government subsidies for EVs, which have been the topic of debate for some time now. With the passage of the Inflation Reduction Act of 2022 and its revised incentives for both retail and commercial customers alike, Ford CEO Jim Farley has high hopes for the bill’s impact on not only its own ability to grow in the EV space, but also the impact it will have on FoMoCo’s partners, too.

“The first opportunity is our largest, the battery production tax credit of about $45 per kilowatt hour,” the Ford CEO said while speaking during the automaker’s Q3 earnings call. “From ’23 to ’26, we estimate a combined available tax credit for Ford and our battery partners could total more than $7 billion with large step-up in annual credits in ’27 as our JV battery plants ramp up to full production.”

The key to reaching these numbers, of course, is Ford’s ability to produce enough all-electric vehicles to meet demand – a tall task in today’s supply constrained world. That’s precisely why the automaker has moved to secure the raw materials it needs to do just that in recent months, signing deals with a host of suppliers around the globe in the process.

In addition to those deals, Ford’s EV battery production joint-venture partner SK On is also investing $22 billion in its own U.S.-based ventures in the coming years, and recently signed a non-binding memorandum of understanding to secure off-take for natural graphite from Syrah Resources’ processing site in Vidalia, Louisiana, and also signed a deal with Lake Resources – an Australian lithium supplier – in its quest to strengthen its battery materials supply chain.

We’ll have more on the Inflation Reduction Act of 2022 soon, so be sure and subscribe to Ford Authority for ongoing 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. Mark B

    I wonder if the speed of research into alternative battery chemistries is proceeding at a similar pace to current mining for existing battery minerals?

    Reply
  2. CHARLES STEMPLE

    INFLATION REDUCTION ACT IS NOTHING OF THE SORT,IT WILL WORK TO MAKE OUR LIVES WORSE

    Reply
    1. RWFA

      Yes folks, believe the rando who types his comments in all caps. Such a person is assuredly authoritative, well informed and emotionally on top of things.

      Reply
  3. LANCE CLOUSER

    SNOWFLAKE !!!

    Reply
    1. RWFA

      Better put on your mittens then! And, relax, try not to let things scare you into blurting out in all caps.

      Reply
      1. Scotty

        … caps? RWFA, what are you, 10? you’re just as bad, if
        you have a big problem with capital letters. You hate velcro, too then?

        Reply
  4. Thurston Munn

    All of this is leading to higher inflation paid for by the taxpayers and will have zero impact on the climate. All a money-making scheme to make few rich and plunge the rest of us into poverty.

    Reply
    1. RWFA

      Oh yes, such elegantly compact analysis, fit for a FN chyron, surely worthy of accolades and not smirks.

      Reply
    2. Scotty

      GREAT POINTS, THURSTON. THESE LEC BOTS DON’T UNDERSTAND
      WHERE “POWER” COMES FROM. JUST PLUG IT IN AND VOILA! MAGIC!

      Reply
  5. Bryan Mclellan

    Farley should stay in his own lane and continue to fo what he does best, ruin Ford Motor Company.

    Reply
    1. Scotty

      TOTALLY AGREE, BRYAN!

      Reply
  6. Bob

    Thank God for government subsidies. After all, Henry got them when he built the Model T.

    Reply
  7. Ray H

    Fell off the turnip truck yesterday? All caps, has been, nearly since Al Gore invented the internet, (satire) the written equivalent of screaming at the top of your lungs, so yes, those of us who understand internet communication conventions do have a problem with all caps! It’s obnoxious, rude, and not done by the educated and informed.

    Reply
  8. Ray H

    Some of us really do understand where the power for our electric cars and other modern tech. devices comes from: The 14 solar panels on my roof, and the 8.5K AH of LiFePO4 batteries that back up at night and when the grid is down. Those of you who can’t see the vision of the certain future, and disparage electric vehicles need to study up on the latest tech developments. Ford is switching to LiFePo4 batteries because they use much less Li, and saltwater batteries are on the horizon. Other tech is on the way too. Tesla is far from the only solution, but dino juice is becoming scarce and very costly.

    Reply
  9. Bob

    When will they make anything in enough quantity so you can actually go and buy it? How about making the Maverick lightning?

    Reply
  10. Mike

    I love when things are good for American business, but I hate when it comes at the expense of Americans. Farley needs to keep his mouth shut about this instead of rubbing it in. The more I hear from Ford, the more I’m starting to believe they were a big part of that cabal of big companies, that wanted to build stuff in other countries and take money from taxpayers, that put a lot of money up to get rid of Trump.

    Reply
  11. Chuck Myers

    To all you morons that believe electric vehicles will impact climate change more than a very minimal amount you have fallen for the biggest scam ever. Especially when 1 airplane causes as much damage to the climate as at least 1,000 vehicles do. How great it is that biden and Obama are flying all over the country as they have shoved their green agenda down our throats and completely destroyed our economy.

    Biden and the green agenda have committed the biggest criminal offense against the American people in history.

    Reply
  12. Bob

    Ray must live where the sun shines all the time.
    Give that a whirl where it doesn’t. Where it may not shine for a week or more. Heck, before global warming, sorry, Climate Change, even California went gray for a lot of January. How’s your solar efficiency at charging those batteries doing then?
    Mike – it IS a total big business scam. It’s all the guy in the aisle at Home Depot selling you solar. Why isn’t HD selling it themselves?

    Reply

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