We finally have a bit of insight into how much cheaper lithium-iron phosphate batteries will be for Ford.
While speaking at the Evercore Utility Conference in Palm Beach, Florida earlier this month, Ford Pro CEO Ted Cannis said this about LFP batteries on the F-150 Lightning and Mach-E:
“[LFP batteries are] roughly 10-to-15 per cent less cost. Not as dense chemistry, but allows for more durability and more cycles, so it looks like a good solution for those customers who are not looking for all the density and longer range of NCM.” (via Ford Authority)
LFP batteries have numerous upsides, including being cheaper, safer and can even regularly charge to one hundred per cent without speeding up battery degradation.
With the rising costs of cobalt and other raw materials, it should come as no surprise that automakers are looking for a cheaper option for their battery packs. However, most traditional automakers have been slow to move away from lithium-ion.
Ford announced in July 2022 that CATL would supply the company with LFP battery packs for its vehicles. With this partnership, the Mustang Mach-E will receive LFP battery packs in 2023, while in 2024 the F-150 Lightning will follow suit with its LFP battery packs.
However, the company is not planning to move the E-Transit to LFP battery packs anytime soon.
The question is, will Ford drop prices for the Mach-E and Lightning with these savings? Only time will tell, but last year the automaker admitted it was not making any profit on the Mach-E due to rising inflation.