An auto CEO came very close to saying the right thing

Frustration with battery size in electric vehicles: Automotive CEO Jim Farley speaks frankly about the future of the electric car industry, not safety or the environment

The race to cram heavier and heavier batteries into bigger and bigger electric vehicles hit a speed bump today when a major automaker CEO finally threw up his hands and asked why.

“I have no idea what’s going on in this industry right now,” Ford CEO Jim Farley said during his company’s capital markets event Monday. He was referring to electric vehicles coming out with 450–500 miles of range including the new electric Cadillac Escalade, which was likely announced today.

To be sure, Farley’s beef with battery sizes isn’t really about safety or the environment but, rather, about cost. The profit margin of the auto industry is very protective because heavier batteries tend to squeeze it. Which is why I can only give him partial credit for coming to the realization about America’s battery obesity epidemic.

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But weight has a lot to do with it, too. Mass is equal to velocity and is used as a measurement of momentum. Basic physics. The heavier the vehicle, the more likely it is to kill you when it hits you.

If you own those types of batteries, you will not be able to make money. We need to start discussing the efficiency and the size of batteries for the range.

I think it is great that Farley has come to a conclusion about the instability of EV battery sizes. Especially if it results in smaller, more efficient batteries in the company’s upcoming EVs (TBD). Did he arrive at the realization exactly as I would have liked? Of course not. But I’m not going to begrudge the journey he’s on. There is still time left.

“What we want to learn is the fitness cycle between getting data off the vehicle, changing the software, shipping it back to the vehicle, getting tighter and faster and faster,” Farley said in response to a question about cash burn. “That to us is as important as anything.”

It was uncertain if investors were still skeptical about Ford’s plan to burn lots of cash and compete with both BYD andTesla in the Chinese market. The executives of Ford said that expenses like subscription and hands- free driving features should help boost its profit margins.

“We think numbers like 350 [miles] mix [of city and highway driving speeds], 300 [miles] at highway speeds, plus super-fast charging is a really great combination,” Field said. We want to push it even lower.

That will be achieved by squeezing more efficiency out of less capacity, according to Doug Field, vice president of electrification and software. He explained how the old chemistry allows a 150kWh battery to provide 300 miles of range, while the new chemistry allows a 100kWh battery to provide 350 miles of range. A lot still depends on the size of the vehicle and the efficiency that can be achieved through improved aerodynamics, for example.

The chemistry used in Ford’s next-gen battery will be more durable, faster charging and cheaper than its current lineup of EV, the company says.