Building on strong demand for its new EVs, Ford today announced a series of initiatives for sourcing battery capacity and raw materials that light a clear path to reach its targeted annual run rate of 600,000 electric vehicles by late 2023 and more than 2 million by the end of 2026.
The company detailed its global vehicle portfolio plans supporting these production goals as
part of its Ford+ plan. Ford expects a compound annual growth rate for EVs to exceed 90%
through 2026, more than double forecasted global industry growth.“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.”
Ford plans to invest over $50 billion in EVs through 2026, targeting total company adjusted
EBIT margins of 10% and 8% EBIT margins for EVs by 2026. As Ford creates a new EV supply chain that upholds its commitments to sustainability and human rights, the company continues to plan for more than half its global production to be EVs by 2030 and to achieve carbon neutrality globally no later than 2050.
Ford is adding lithium iron phosphate (LFP) cell chemistry to its portfolio, alongside its existing
nickel cobalt manganese (NCM) chemistry. This creates even more capacity for high-demand
products and provides customers many years of operation with minimal range loss. It also
reduces the reliance on scarce critical minerals such as nickel and, at current costs, brings a 10
to 15% bill of material savings for Ford versus NCM batteries.
The company confirmed it has secured 100% of the annual battery cell capacity needed – 60
gigawatt hours (GWh) – to support this 600,000 EV run rate by working with leading battery
companies around the globe.