Ford’s electric vehicles are getting more affordable thanks to new chemistry

The IRA Law and the Federal Tax Credits on Electric Vehicles: What Do We Mean to Learn From China, Where Do We Buy Our Batteries?

Ford currently sources most of its batteries from SK Innovation. By making its own batteries in the US, Ford thinks it can avoid some of the conflicts that arise from importing batteries overseas. In order to get a federal EV tax credit of $7,500, batteries have to be manufactured in North America. The Treasury Department will probably interpret the IRA rules that discourage dealings with foreign entities of concern like China very differently, we don’t know what that will be.

TheIRA legislation that was passed in August will change how EV tax credits are allowed. Under the new law, consumers buying an electric vehicle will be eligible for tax credits of varying amounts, depending on whether the vehicle itself, as well its batteries and battery components, were manufactured and the battery minerals extracted in the US.

She said the IRA was important for them and did what it was meant to do. “And it allowed the United States to capture 2,500 fantastic technical jobs and all the indirect jobs that go with it plus the future growth.”

The Factors Behind the Scenes: Why a New Factory is Interested in Building a Lithium Iron Phosphate Battery for Ford Electric Vehicles

The plant will make lithium iron phosphate batteries, better known as LFP (lithium ferro-phosphate), batteries. This battery is made without nickel andcobalt; elements that can be difficult and expensive to get from the earth.

The vehicles with LFP batteries will also be more affordable than Ford’s current lineup — though how much more affordable, the company wasn’t prepared to say. It’s possible that we will find out soon enough, with the company indicating that it expects to introduce the first LFP-powered mustang MACH-E later this year and F-150 Lightning next year. Ford recently slashed Mach-E prices in a bid to compete with the top EV seller.

Most of today’s EVs use lithium-ion batteries whose cathodes use NCM chemistries. NCM has a lot of baggage due to its use of cobalt, which has been labeled the “blood diamond of batteries” because of its destruction of the environment in the Democratic Republic ofDominican Republic.

Lisa Drake, a vice president of EV industrialization atFord model e, said that they tolerate more frequent and faster DC fast charging. “And they actually perform best when they’re being charged from zero to 100 percent regularly. And that is ideal for customers who want to drive all the way to empty and then charge quickly back to 100 percent.”

The vehicles with LFP batteries will also be more affordable than Ford’s current lineup — though how much more affordable, the company wasn’t prepared to say

Quality issues and the large number of recalls are among the reasons why Jim Farley is disappointed in the financial performance of Ford.

There have been rumors of a new factory for months. Ford considered building it in one of the poorer areas of Virginia, as part of a larger battery plant network. The project would have created up to 2,500 new jobs building lithium iron phosphate batteries for Ford’s electric vehicles. Glenn Youngkin, the Republican governor of the state, rejected the project due to the involvement of China’s communist government.

Ford will maintain a temporary pause on production and shipment of its electric F-150 Lightning through next week as it continues to investigate an issue with the truck’s battery. The full investigation, though, could “take a few weeks.”

Battery issues have been cited in several recalls of electric vehicles over the past few years, ranging from software glitches to more serious fire risks. Several fires resulted in a production halt for Chevy’s Bolt EV lineup.

Currently the best-seller in the category, the Lightning will face intense competition. GM will produce the Chevrolet Silverado EV later this year followed by the Sierra EV in early next year.

Tesla has said its Cybertruck will begin full production in 2024, following a number of delays. Stellantis is also supposed to begin production of the Ram 1500 Rev electric truck later next year, as well.