Electric vehicle makers, constrained by slowing demand, are trying to make their cars affordable for cash-strapped buyers. Ford Motor Company F is working on ways to reduce costs and pass through the benefit to consumers.
What Happened: The lithium-iron phosphate, or LFP, battery, would come to Ford's Mustang Mach-E and F-150 Lightning EV pickup truck by the year 2023 and 2024, according to Ford Pro CEO Ted Cannis.
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The LFP chemistry batteries will be 10 -- 15% less costly, the executive said. He added that it allows more durability and more cycling, even though it may not have a dense chemistry. The energy density of EVs allows them to travel longer without having to increase the size of the battery pack.
It looks like a good solution for those who are not interested in all the density and longer range of NCM, according to Cannis. He said that was a big opportunity.
NCM, or nickel-cobalt manganese, is expensive because it contains a similar amount of lithium as in LFP batteries and also contains cobalt, which is expensive and produced using a controversial process, SP Global said in a report.
Why is it important to know that Ford is the second-biggest U.S.EV maker and has set its sights on transitioning fully to green-energy vehicles. In July 2022, the company announced that it would source LFP battery packs from Chinese vendor CATL.
Blue Oval said that the world's biggest EV battery manufacturer will supply LFP batteries to the Mustang Mach-E in 2023 and the F-150 Lightning EV in 2024.
According to Benzinga Pro data, Ford closed Wednesday s session up 0.39%, at $12.79.