Ford Motor stated that it will use low-cost lithium iron batteries (LFP), from Chinese battery manufacturer CATL for its electric vehicles.
Ford’s decision that CATL lithium ironphosphate batteries will be used for the Mustang Mach-E and F-150 Lightning in the next year is a major win for the Chinese battery manufacturer.
Ford Vice President Lisa Drake stated that the automaker will source lithium-iron batteries in North America from a new plant beginning in 2026. Drake didn’t specify whether the plant would be built by CATL. Reuters reported that in May, CATL was seeking sites in the US for electric vehicle batteries for Ford or BMW vehicles.
Ford’s decision not to use lithium iron batteries in its top-selling electric cars in North America will result in a 10-15% reduction in costs. Tesla sells low-cost Model 3 sedans in the US with LFP batteries. Rivian, an electric truck and van manufacturer, also stated that it plans to use LFP battery.
Ford also stated that it had reached an agreement to use the Chinese company’s battery in Ford vehicles sold in China, Europe, and the US. According to the CATL statement, “the two companies intend to use their strengths and jointly explore new business opportunities all around the globe,” which includes lithium iron and other batteries technologies.
Zeng Yuqun (chairman of CATL) also stated at the World Battery Conference 2022, that CATL batteries represented 34% of the market for the first half of 2019, compared with 28% last year.