The Blue Oval has also announced multiple agreements are now in place to ramp up EV production.
Ford's EV push is forging ahead at an increasingly rapid rate. In June, it sold 4,353 electric vehicles in the United States, a 76.6% increase over June 2021. Thanks to the Mustang Mach-E, the popular E-Transit that is about to be slapped with a big price hike, and F-150 Lightning, Ford was only behind Tesla in US EV sales in June.
Evidence of an upcoming Maverick Lightning and Ranger Lightning will only strengthen Ford's position, but winning the EV race is about more than the vehicles themselves. The ability to secure battery capacity and ramp up production are two other important pieces of a complex puzzle.
Ford has just stated it is on track to reach a targeted annual run rate of 600,000 EVs by late 2023, having secured deals with several battery suppliers and other industry stakeholders. Essentially, this means Ford will be able to deliver EVs at a rate of 600,000 units per year by that date.
Sourcing the battery capacity and raw materials to achieve that goal is key but that's what Ford has done. The 600,000 EV run rate by late next year will be made up of 270,000 Mustang Mach-Es, 150,000 F-150 Lightnings, 150,000 Transit EVs, and 30,000 examples of an all-new SUV for Europe.
In addition, Ford forecasts a compound annual growth rate for EVs of beyond 90% through 2026 - over double what is forecast for the industry's growth globally.
Ford has secured 100% of the annual battery capacity it needs to support the 600,000 EV run rate which works out to 60 gigawatt hours. This battery capacity comes via several deals with leading international battery companies. For example, Contemporary Amperex Technology Co., Ltd. will provide full lithium iron phosphate (LFP) batteries for the Mach-E. The LFP cell-to-pack technology will make it easier for Ford to quickly scale in order to meet demand for the electric crossover.
Ford says that the new LFP batteries boast minimal range loss over several years of use, reduce the need to use scarce critical minerals, and results in a saving of up to 15% in materials for Ford.
After 2023, Ford's EV numbers will continue to soar, with an annual global run rate of over 2 million EVs targeted by late 2026. Already, Ford has sourced 70% of the battery capacity to meet this goal. Added to all of this, Ford has confirmed several lithium contracts, is direct-sourcing battery cell raw materials, and has sourced almost all the nickel it needs through 2026 and beyond.
The cumulative effect of these initiatives is an EV supply chain that can not only meet customer demand but also uphold the Blue Oval's commitment to sustainability on its path to achieving carbon neutrality by 2050 at the latest.
"Ford's new electric vehicle lineup has generated huge enthusiasm and demand, and now we are putting the industrial system in place to scale quickly," said Jim Farley, Ford's president and CEO and president of Ford Model e. "Our Model e team has moved with speed, focus and creativity to secure the battery capacity and raw materials we need to deliver breakthrough EVs for millions of customers."