Ford CEO doesn’t expect electric car battery costs to drop anytime soon

Wayne, Michigan. – Jim Farley, CEO of Ford Motor Company, does not expect raw material costs for the company’s electric vehicles to decline in the near future, suggesting that automakers will continue to raise prices for their new electric vehicles.

“I don’t think there’s going to be much comfort around lithium, cobalt and nickel anytime soon,” Farley told reporters Wednesday during an event at a Michigan assembly plant.

Farley’s comments come a day after the Detroit automaker said it would raise starting prices for its F-150 electric truck due to “significant material cost increases.” The range increases from $6000 to $8,500, depending on the model. Ford isn’t alone: ​​Rival Tesla raised its prices in the US in June.

Prices for all lithium, cobalt and nickel have risen sharply over the past year as demand from battery manufacturers has outstripped miners’ efforts to increase supply.

Farley said the higher costs of the metals used in its current lithium-ion batteries are why Ford plans to offer low-cost lithium iron phosphate, or LFP, batteries in vehicles like the F-150 Lightning and Mustang Mach-E crossover. .

“I don’t think we should be confident of any results other than an increase in prices,” he said. That’s why we think LFP technology is so critical… we want to make it affordable. “

Last month, Ford said it would start offering LFP batteries from Chinese battery giant CATL that don’t use nickel or cobalt as a low-cost option in the Mustang Mach-E next year. The company plans to expand the option to the F-150 Lightning in 2024.

Ford has also invested in Colorado-based battery-powered company Solid Power, one of several companies developing solid-state batteries for electric vehicles. Solid-state batteries have the potential to offer electric vehicle owners greater range, shorter recharge times, and a lower fire risk than today’s batteries.

Solid Power said Tuesday it is on track to deliver prototype batteries to Ford and BMW, which is also an investor, by the end of the year. But cars that use batteries are still at least a few years away.