Ford Motor Co.
F,
+2.12%
confirmed Thursday that it has secured 100% of the annual battery cell capacity needed to support its 600,000 electric vehicle (EV) run rate target by late 2023. Ford’s stock rose 1.2% in premarket trading. As part of its new battery capacity plan, the automaker said it is adding lithium iron phosphate (LFP) cell chemistry to its battery portfolio, to go with the existing nickel cobalt manganese (NCM) chemistry. That not only increases capacity and reduces reliance on scarce minerals, such as nickel, but also brings costs saving for 10% to 15% versus NCM batteries. Separately, Ford said Contemporary Amperex Technology Co., Ltd. (CATL) will provide LFP batteries to Mustang Mach-E models starting 2023 and for F-150 Lightings in early 2024. Ford and CATL have also signed a memorandum of understanding (MOU) to “explore cooperation” for supplying Ford with batteries for China, Europe and North America. Ford’s stock has slumped 18.9% over the past three months through Wednesday, while the S&P 500
SPX,
+0.99%
has lost 9.9%.

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