Ford CEO Jim Farley poses with the Ford F-150 Lightning pickup truck in Dearborn, Michigan, May 19, 2021.
Rebecca Cook | Reuters
WAYNE, Mich. – Ford Motor CEO Jim Farley doesn’t count on the prices of uncooked supplies for the corporate’s electrical automobiles to ease within the close to future, marking the most recent sign that automakers will proceed climbing costs for his or her new EVs.
“I do not suppose there’s going to be a lot aid on lithium, cobalt and nickel anytime quickly,” Farley advised reporters Wednesday throughout an occasion on the automaker’s Michigan Assembly Plant.
Farley’s feedback come a day after the Detroit automaker introduced it could be elevating the beginning costs for its electrical F-150 pickup as a consequence of “vital materials value will increase.” The will increase vary from $6,000 to $8,500, relying on the mannequin. Ford is not alone: Rival Tesla elevated its U.S. costs in June.
Prices of all lithium, cobalt and nickel have risen sharply over the previous yr as demand from battery makers has outpaced miners’ efforts to extend provide.
Farley stated the fast-rising prices of the minerals utilized in its present lithium-ion batteries are why Ford plans to supply lower-cost lithium iron phosphate, or LFP, batteries in automobiles such because the F-150 Lightning and Mustang Mach-E crossover.
“I do not suppose we must be assured in another outcomes, than a rise in costs,” he stated. That’s why we expect LFP expertise is essential … We wish to make these reasonably priced.”
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Last month, Ford stated it would start providing LFP batteries from Chinese battery large CATL that do not use nickel or cobalt as a lower-cost possibility within the Mustang Mach-E subsequent yr. The firm plans to increase the choice to the F-150 Lightning in 2024.
Ford additionally has invested in Colorado-based battery startup Solid Power, one in all a number of firms working to develop solid-state batteries for electrical automobiles. Solid-state batteries have the potential to supply EV house owners extra vary, shorter recharging instances, and a decrease threat of fires than in the present day’s batteries.
Solid Power stated Tuesday that it is on monitor to ship prototype batteries to Ford and BMW, additionally an investor, by the tip of the yr. But automobiles utilizing the batteries are nonetheless no less than a number of years away.
