Electric cars: Ford expects cheaper electric cars

In order to reduce the cost of new electric cars, a number of car companies are working on different concepts. The aim is to be able to produce the battery more cheaply in order to be able to pass on these cost savings – proportionately – to the end customer. Ford CEO Jim Farley told ABC News that he expects a “price war” on electric cars in the next few years. Half of all electric cars in the world are sold in China and currently the most popular is the van Hong Guang Mini EV from Chinese manufacturer Wuling for $8,000. Almost 400,000 vehicles were sold in 2021 alone, with the Hong Guang Mini EV only offering a range of 120 kilometers.

From 2026 there should be an electric Ford for 25,000 US dollars

Ford currently has the SUV Mustang Mach-E Prices increased by up to 9,000 euros, because increased costs as a result of the Ukraine war and the Covid 19 pandemic want to be cushioned. From 2026, on the other hand, it should be possible Selling EVs for around $25,000, of which $18,000 is material costs. The lithium-ion battery with nickel-manganese-cobalt alone in the Mustang Mach-E currently costs $18,000 plus $3,000 for the charging electronics.

In the next few years, Ford will probably switch to LFP batteries that do not use cobalt. A lithium iron phosphate battery is cheaper to manufacture than the current lithium ion batteries. An LFP battery is also more robust than a lithium-cobalt battery and can e.g. B. not explode at all. However, an LFP battery is more sensitive to winter temperatures than a conventional lithium-ion battery, so the range and charging speed can drop significantly in winter. In order to mitigate this effect, active thermal management for the battery and a heat pump must be installed in the electric car. Tesla is already using the LFP battery for entry-level Model 3 models. In addition to a different battery technology, Ford wants to use improved aerodynamics to ensure that smaller batteries can be installed without reducing the range compared to today. In addition, Ford wants to save costs, for example by doing without advertising and selling cars on the Internet instead of in the dealership. Ford’s competition, such as Opel, will in future also rely on increased recycling of old lithium-ion batteries in order to reduce costs.

Also worth reading: Stellantis boss: Mobility must remain affordable for many people

Collection on the expected price war for e-cars:

• Ford CEO Jim Farley expects a price war on electric cars soon. The background is the use of LFP batteries instead of expensive lithium-ion batteries. In addition, better aerodynamics should help to enable the same range with smaller batteries.
• From 2026 it should be possible to sell e-cars at prices around 25,000 US dollars.
• The lithium-ion battery alone in the Ford Mustang Mach-E currently costs just under 18,000 US dollars. By 2026, the total cost of materials for an electric car will be $18,000.

Sources: ABC News, Insideev’s (1), Insideev’s (2)