Ford adjusts its EV strategy as supply shortages jeopardize sales targets – by Gabriel Friedman (Financial Post – July 21, 2022)

https://financialpost.com/

Ford said it will use lower performance batteries for select models in order to meet its electric-vehicle targets

Ford Motor Co. said it will use lower performance batteries for select models in order to meet its electric-vehicle targets, the latest example of how global ambitions to cut greenhouse gas emissions are colliding with the reality of supply chain constraints.

The Detroit-based automaker currently offers two versions of the Mustang Mach-E and the F-150 Lightning — a standard version and a vehicle with extended range. The latter are powered by lithium-ion batteries that use the nickel, cobalt, and manganese (NCM) chemistry that has become an industry benchmark, and the standard versions use lower performance NCM batteries.

Starting in 2023 and 2024, the standard versions will be made with cheaper batteries, a second-best alternative that Ford’s leaders decided was the best way to keep up with growing demand for electric vehicles.

Ford said on July 21 that it had struck an agreement to import lithium-iron-phosphate batteries from Chinese battery maker Contemporary Amperex Technology Co. Ltd. Those batteries are less energy dense, which means they provide a shorter driving range, but are more readily accessible because they contain neither nickel nor cobalt.

For the rest of this article: https://financialpost.com/commodities/energy/electric-vehicles/ford-adjusts-its-ev-strategy-as-supply-shortages-jeopardize-sales-targets