From Ford Authority. New EV suppliers identified.
Note Ford offers non-binding memo’s of understanding to launch large capital investments by supply base.
What about ICE platform suppliers who will never see the volumes “projected” when bid to recover investment.
No surprise when they kick Ford to the curb with the new ABF mentality, Anybody But Ford.
With a planned investment of $50 billion with a goal of producing two million EVs annually by 2026, Ford will obviously need a large supply of batteries to reach that goal, as well as ramp up production significantly in the coming years. That task will be more difficult amid numerous supply chain shortages and concerns around the ethical and environmental impact of sourcing raw materials for Ford EV battery plants – even with its newly-formed jo--t venture, BlueOvalSK – which has the automaker looking at additional suppliers, considering vertical integration, and switching over to lithium-iron phosphate (LFP) batteries as well. Now, a new Ford EV battery master plan has been revealed that seems poised the help The Blue Oval achieve those goals in the coming years.
By late 2023, FoMoCo plans on producing a grand total of 600,000 EVs across the globe, consisting of 270,000 Ford Mustang Mustang Mach-E crossovers, 150,000 Ford F-150 Lightning pickups, 150,000 E-Transit vans, and 30,000 units of an all-new mid-size crossover destined for Europe. Ford reports that it has already secured the raw materials necessary to reach this goal, via a number of partnerships. That includes securing LFP batteries packs for the Mach-E starting next year and the F-150 Lightning in 2024 from Contemporary Amperex Technology Co., Ltd. (CATL), as well as drawing from existing suppliers such as LG Energy Solution (LGES), SK On, and LGES.
Through those relationships, Ford has secured not only all of the battery cell capacity it needs to build 600k EVs by the end of 2023, but also 70 percent of what it needs to reach its goal of producing two million annually by 2026. The automaker has signed a memorandum of understanding (MOU) with a number of companies to explore additional supplier agreements, including with CATL for an additional 40 GWh of LFP capacity in North America starting in 2026, Koç Holdings in Turkey for a new jo--t venture, and Vale Canada Ltd., PT Vale Indonesia, Huayou Cobalt, and BHP for nickel, in addition to direct-sourcing battery cell raw materials as well.
As far as lithium and copper go, FoMoCo has also secured several key contracts for that critical material from the likes of Liontown Resources, Rio Tinto, EcoPro BM, SK On, ioneer, Compass Minerals, and Syrah Resources.
“Ford’s new electric vehicle lineup has generated huge enthusiasm and demand, and now we are putting the industrial system in place to scale quickly,” said Jim Farley, Ford’s president and CEO and president of Ford Model e. “Our Model e team has moved with speed, focus, and creativity to secure the battery capacity and raw materials we need to deliver breakthrough EVs for millions of customers.”