Image Source: Ford
Ford is one of the newest players in the electric vehicle realm thanks to the release of the 2021 Ford Mustang Mach-E, and rumor has it—that’s not enough.
While the Mach-E will likely continue to do impressive numbers on the track and on the lot, the automaker has recently hinted it is interested in producing its own supply of fuel cells for its electric vehicles sometime before 2025.
As of now, there is no official word that the batteries would be manufactured domestically, but the idea has been floated by Hau Thai-Tang, chief product platform and operations officer, on behalf of Ford.
Growing Electric Vehicle Market
The electric vehicle segment has grown leaps and bounds over the past decade thanks to large investments in fuel cell technology and the pledge to become more carbon-friendly across the automaking landscape.
However, the exact timing of Ford’s ability to become self-reliant on its own technology fully depends on the continued evolution and adaptation into the market. It seems like Ford is planning to slowly wet its feet into the market by gauging the public and the receptiveness of the vehicles before it goes 0 to 100 with EV production. But considering the movement for electric vehicles is gaining steam, the automaker will likely have no problem in getting eyes looking their way.
Strong EV Sales Needed
A large problem with EV’s in the infancy of their rise is the ability to cut costs while delivering on performance. Luckily, despite most EVs’ costs, the market has seen a spike in growth and prospective interest. If and when Ford decides to make its batteries domestically, the automaker would be light years ahead in cutting costs on its electric vehicles.
A dedicated manufacturing process for batteries will allow the automaker to significantly cut costs on their offerings and allow more consumers to access the vehicles from a financial standpoint.
Depending on the success of the 2021 Mustang Mach-E and the upcoming EV releases, Ford will have to make the key decision as to whether or not they will become self-sufficient in the EV battery segment. Volume will likely be a good indication moving forward, more cars sold and high interest will bode well for the automaker’s plans.
Ford’s $185 Million Investment
Ford recently announced a massive $185 million investment into a new battery lab facility, a major step towards self-sufficiency. Unlike other automakers in the segment, Ford has not yet turned full throttle in battery production and currently buys its batteries from South Korean suppliers such as SK Innovation.
According to Thai-Tang, upon completion of a Ford-built battery facility, the plant will be able to produce lithium-ion and solid-state batteries for use in future EVs.
As stated earlier, the EV market is growing and will likely continue to grow rapidly. But, in order to continue on a path towards full electrification, automakers have to wet their feet and begin the creative process to deliver these products. Electric vehicles made up roughly 2% of new U.S. vehicle registrations in 2020, but Ford is hopeful that the market will increase beyond those benchmarks to upwards of 25% to 30% by 2030 and 45% to 50% by 2035.
Stay updated on vehicle technology and new vehicles by connecting with Wayne Akers Ford. They have a wide selection of SUVs for families of all sizes, an extensive catalog of Mustangs, and capable trucks for commercial or personal use.
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Terry is an avid Nascar fan who grew up attending races at Charlotte Motor Speedway in Concord, North Carolina, just down the road from his hometown of China Grove, NC. Terry currently resides in Wellington and has been writing for 15 years. He also enjoys watching the Road Runner Looney Tunes cartoon with his two sons in his spare time.