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Ford CEO Doesn’t Expect Electric Vehicle Battery Costs to drop anytime soon

The latest indication that manufacturers will keep raising prices for their new EVs is Ford Motor CEO Jim Farley’s prediction that the pricing of raw materials for the company’s electric cars won’t decline in the foreseeable future. During a press conference on Wednesday at the automaker’s Michigan Assembly Plant, Farley said, “I don’t think there will be any respite on lithium, cobalt, and nickel very soon.”

Farley’s remarks came a day after the Detroit manufacturer declared that “substantial material cost hikes” will result in a rise in the starting costs for its electrified F-150 truck. Depending on the model, the hikes might be anywhere from $6,000 and $8,500. Ford is not by itself: Competitor Tesla raised its rates in June.All lithium, cobalt, and nickel prices have increased significantly over the past year as Battery manufacturers’ demand has outpaced miners’ efforts to boost supply. Farley said that Ford wants to provide less expensive lithium iron phosphate, or LFP, batteries in cars like the F-150 Lightning and Mustang Mach-E crossover due to the rapidly growing costs of the minerals used in its existing lithium-ion batteries.

I don’t think we should have confidence in anything except a price hike, he remarked. That is why we consider LFP technology to be essential. We aim to keep these prices low. Ford said last month that the Mustang Mach-E would start using LFP Battery from Chinese Battery juggernaut CATL as a less expensive option in 2019. These batteries don’t contain nickel or cobalt. In 2024, the business intends to extend the option to the F-150 Lightning.

Another company aiming to create solid-state batteries for electric vehicles is Colorado-based Solid Power, in which Ford has invested. Compared to current Battery, solid-state batteries have the potential to give EV users more range, faster charging periods, and less fire danger. By the end of the year, Ford and BMW, who are also investors, will get prototype Battery from Solid Power, the company stated on Tuesday. The use of the batteries in cars is still at least a few years off.

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