Ford CEO Jim Farley poses with a Ford F-150 Lightning pickup truck on Might 19, 2021 in Dearborn, Michigan.

Rebecca Prepare dinner | Reuters

Wayne, Mich. — Ford Motor CEO Jim Farley does not count on decrease uncooked materials prices for the corporate’s electrical autos within the close to future, the most recent signal that automakers will proceed to hike costs for his or her new EVs.

“I do not suppose there’s going to be any reduction on lithium, cobalt and nickel anytime quickly,” Farley informed reporters throughout an occasion on the automaker’s Michigan meeting plant on Wednesday.

Farley’s feedback come a day after the Detroit automaker introduced it will elevate beginning costs for its electrical F-150 pickups as a consequence of “important materials price will increase.” Will increase vary from $6,000 to $8,500, relying on the mannequin. Ford is not alone: ​​Rival Tesla elevated its US costs in June.

Costs of all lithium, cobalt and nickel have risen sharply over the previous yr as demand from battery makers outpaced miners’ efforts to extend provide.

Farley stated that as a result of quickly rising price of the minerals utilized in its present lithium-ion batteries, Ford has determined to make use of low-cost lithium iron phosphate, or LFP, batteries in autos such because the F-150 Lightning and Mustang Mach-E crossovers. deliberate to supply. ,

“I do not suppose we ought to be relying on any consequence aside from a rise in costs,” he stated. That is why we expect LFP expertise is necessary… we wish to make them reasonably priced.”

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Final month, Ford stated it will start providing LFP batteries from Chinese language battery large CATL that do not use nickel or cobalt as a lower-cost possibility within the Mustang Mach-E subsequent yr. The corporate plans to develop the choice to the F-150 Lightning in 2024.

Ford has additionally invested in Colorado-based battery startup Stable Energy, one among a number of corporations working to develop solid-state batteries for electrical autos. Stable-state batteries have the potential to supply EV homeowners better vary, shorter recharging time, and fewer danger of fireplace than immediately’s batteries.

Stable Energy stated Tuesday it’s on monitor to ship prototype batteries by the tip of the yr to Ford and BMW, which can be an investor. However autos utilizing batteries are nonetheless at the least a number of years away.

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