The automotive industry’s transition towards electrification is gaining traction as both Ford and GM have recently announced that they have secured enough resources to enable the two companies to ramp up electric vehicle (EV) production exponentially in the coming years.
Ford V General Motors: Locking In The EV Supply Chain
Ford has recently announced plans to produce 600,000 EVs by the end of 2023. The Dearborn-based automaker hopes to increase that number to two million by the end of 2026. After investing an additional $20 billion into EVs, bringing the total to $50 billion. The company has added lithium iron phosphate battery packs to its repertoire in order to produce these vehicles. This will join the set of nickel cobalt manganese battery packs the company already uses. The LiFePO battery pack will begin making its way into the North American Mach-E next year, with the Lightning starting to get them in early 2024.
Meanwhile, General Motors announced a binding agreement for Cathode Active Material (CAM) supplied from LG Chem. This agreement will help GM meet its fast-growing EV production needs. CAM is a vital battery material consisting of components like processed nickel, lithium, and other materials representing about 40% of the cost of a battery cell. Through the long-term supply arrangement, LG Chem plans to supply more than 950,000 tons of CAM to GM beginning the second half of 2022 through 2030, which is enough for approximately 5 million units of EV production.
GM has now contractually secured all battery raw materials to support its goal of 1 million units of EV capacity in North America by the end of 2025. On the other hand, Ford’s 600,000 units by 2023 goal will include vehicles within the European market and North America. Either way, the forecast looks to hold a lot of EVs from both companies within the coming years. Putting them on track to reach their goals for an electric future.