Ford Sees No Advantage To Having A Battery Plant - Leaves It's EV Future For Others To Dictate

Ford Motor Co.’s broad investment in electrification includes money for a slew of hybrids, plug-ins and battery-electric vehicles, but nothing in one area where its biggest rivals are spending billions: battery production.

Even with the Mustang Mach-E coming this year and the F-150 EV and Transit EV expected in 2022, Ford executives say they’re content to source batteries from suppliers instead of making their own.

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CANADIANCOMMENTS - 8/31/2020 2:30:07 PM

+3 Boost

If they don't make the battery that is in an ICE vehicle, then I can see their point of view. However, this is a source of competitive advantage. I would buy a battery company with leading edge technology if I was Ford. Get VW to chip in too.

PUGPROUD - 8/31/2020 3:54:28 PM

+1 Boost

When your bleeding cash, up to your ears in debt and your stock price is in the dumpster what else are you going to say or do. No currency, no purchase.

ricks0me - 8/31/2020 4:52:43 PM

0 Boost

CC and Pug: both good statements but >>> EV motors have no soul. Think 426 Hemi, 440 6 pack, 454 GM, 427 428 429 Ford. These engines are from 50 years ago but still bring emotions under the hood. An EV motor, not so much. Who wants the overhead of a battery plant. Not me.

I believe that if Ford was swimming in cash, it would still not be a good investment. I would be content to buy EV motors and batteries off the shelf. The first Ford Hybrids had a lot of Toyota in there. The technology was licensed.

mre30 - 8/31/2020 6:53:10 PM

+2 Boost

There are no automakers who manufacture their own tires...

Vertical integration is really dead, so what's the issue here?

SanJoseDriver - 9/1/2020 12:21:15 AM

+2 Boost

Vertical integration is coming back fast. Tesla is doing their own motors, powertrain, MCU, Autopilot computer, and most of the batteries. If you have enough scale, the Apple model works. Not doing it this way reduces risk, but leaves you less in charge of your own density. Until Ford has more EVs it won't matter much.

MDarringer - 8/31/2020 9:05:11 PM

+1 Boost

This is an incredibly shrewd move.

It's like the people who DON'T buy their own solar panels. It's like Dodge/Ram buying Cummins diesels rather than buying their own.

If you build your own batteries, your ROI is limited to your own sales, and your development costs are high relative to income because you have to out-engineer the big battery companies but you only have income from your own sales to fund it.

Those big battery companies can afford to invest more to make innovation happen because they have ROI from multiple manufacturers.

supermoto - 9/1/2020 12:23:04 AM

+1 Boost

It makes sense. Once solid state batteries are available in the not too distant future, LI batteries (and the plants that make them) are totally obsolete.

SanJoseDriver - 9/3/2020 6:15:29 AM

+1 Boost

Cost is astronomical right now, it will take many years for solid state to be used on non ultra-premium EVs.

SuperCarEnthusiast - 9/3/2020 10:43:38 AM

+2 Boost

Battery technology will be want sells BEV! Who has the best technology will sell the highest amount of cars. Make your own battery increase margin too, cut out the markup of the suppliers!