Ford Motor Co F said on Tuesday it has signed up China’s largest battery maker CATL as a supplier, months after revealing a multi-billion plan to build battery plants with South Korean battery partner SK Innovation.
What Happened: The Dearborn, Michigan-based automaker told Benzinga it has a business relationship with CATL, centered on battery technology, without revealing more details.
Ford is targeting a global production capacity of 240 GWh by 2030. It would work with different battery suppliers with their plants spread across North America, Europe and China to achieve that target.
Ford will work with multiple battery suppliers including CATL, BYD Co BYDDY, and South Korean battery makers SK Innovation and LG Energy Solution and Japan’s Panasonic to meet its battery capacity targets, as per cnEVpost, which first reported on the development.
China’s BYD has already been supplying Ford the power batteries that are used in Mustang Mach-Es, the automaker’s first electric vehicle that went on sale about a year ago. Ford uses BYD’s 811 lithium batteries, instead of the less bulky lithium-iron-phosphate (LFP) Blade batteries.
CATL also supplies to Tesla Inc TSLA and Nio Inc. NIO
Why It Matters: Legacy automakers around the globe are rushing to secure battery supplies as they set steep targets to switch to electric vehicles.
Ford, for instance, is pumping in $30 billion in electrification efforts by 2025. The automaker in September revealed a $11.4 billion plan to build two new battery factories in a joint venture with South Korea's battery maker SK innovation. The project is expected to add 11,000 jobs.
SK Innovation in August said it is splitting its battery and plans to lift its battery capacity to 200 GWh by 2025, from 40 GWh now, and 500 GWh by the end of the decade. The company has also said it has an order book of 1,000 GWh for EV batteries, worth about $100 billion.
The automaker expects 40% to 50% of its global vehicle volume to be fully electric by 2030.
See Also: Toyota To Launch Electric Sedan In China Using Warren Buffett-Backed BYD's Core Tech
Legacy rivals General Motor Co GM and Volkswagen Group VWAGY have similar ambitions and plans as they all look to catch-up with the current electric-vehicle market leader Tesla.
Not just automakers, suppliers too are adding capacities to help their clients meet the targets.
Price Action: Ford shares closed 3.85% higher at $19.96 a share on Tuesday.
Photo: Courtesy of Ford
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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