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.
Comments
I wonder if the speed of research into alternative battery chemistries is proceeding at a similar pace to current mining for existing battery minerals?
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.
Oh yes, such elegantly compact analysis, fit for a FN chyron, surely worthy of accolades and not smirks.
GREAT POINTS, THURSTON. THESE LEC BOTS DON’T UNDERSTAND
WHERE “POWER” COMES FROM. JUST PLUG IT IN AND VOILA! MAGIC!
Farley should stay in his own lane and continue to fo what he does best, ruin Ford Motor Company.
TOTALLY AGREE, BRYAN!
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.
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.
When will they make anything in enough quantity so you can actually go and buy it? How about making the Maverick lightning?
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.