Ford CEO Jim Farley expects the cost of raw EV materials to remain high, according to remarks made during an event at Ford’s Michigan assembly plant. This comes after the announcement that Ford would be raising the starting prices for its electric F-150 Pickup, the Lightning, as a result of “significant material cost increases.”
Depending on the model, the hikes range from $6,000 to $8,500. Ford isn’t alone in raising pricing; rival Tesla also did it in June. All lithium, cobalt, and nickel costs have increased significantly over the past year as battery manufacturers’ demand has outpaced miners’ efforts to boost supply.
Farley said the increase in material costs for its current lithium-ion batteries has led to the automaker investigating other options for the future. This includes Ford’s plan to offer lower-cost lithium iron phosphate, or LFP, batteries in some of its vehicles.
Ford plans to partner with the Chinese company CATL for these LFP batteries. They are scheduled to be included in the Mustang Mach-E next year and the F-150 Lightning starting in 2024.
Ford has also invested in solid-state battery technology through the Colorado-based startup Solid Power. These newly developed batteries have the potential to increase range, shorten recharging time, and have a significantly decreased fire risk.
The fact remains that advancements in battery design for electric vehicles are something that vehicle owners can look forward to. But that won’t help buyers in today’s market, who face rising prices and will most likely continue to see increases over the next several months.
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