Ford Ramps Up EV Focus – Announces New Expedition-Based EV and New Battery Tech

Ford Motors, an American automaker whose sales grew by 41% to 10,886 vehicles in the first quarter 2023 is about to embark on another adventure to compete with rivals such as Elon Musk’s Tesla.

Ford's ambitious plan, unveiled at the company’s investor meeting Monday, will try to reduce the $7 billion costs in an effort to gain investor trust on Wall Street.

Ford Eyes Next Generation EV Architecture

Ford has two major challenges: to increase production of electric vehicles, and cut costs which have eaten into its revenue.

Ford's Monday capital markets day showcased a plethora of battery developments. This included recently signed contracts, which will allow the 120-year old vehicle manufacturer to double its position in EVs.

Ford is planning to be the first company to launch the world's very first three-row electric sport utility vehicle (SUV), with a range of 350 miles (563 km) or approximately.

Ford Expedition SUV is the inspiration for this SUV that will debut in 2025.

Ford took advantage of the opportunity to showcase major deals in supply centered around its powerful lithium battery.

A report by Counterpoint, which examined EV sales in America, revealed that Tesla dominated the market with a 54.5% year-over-year increase in 2022. According to the Global Passenger Electric Vehicle Models Sales Tracker of the platform, Tesla has a market share of 50%. Other EV manufacturers have only 49.5%.

' Tesla dominates the US EV Market while other automotive giants such as Ford, General Motors Stellantis Volkswagen and Hyundai struggle to provide strong competitiveness,' Research Analyst Abhik mukherjee stated in a written Statement to Counterpoint in April on the dynamics of EV market.

Tesla will be concerned if Ford follows through with the plan announced on Monday, which calls for 2 million EVs to be produced by 2026.

Ford CFO John Lawler told the Investor Day presentation on Monday that you won't believe us until we deliver it. We've already told you. It's true. We've delivered and we haven’t. We have to prove that. We can discuss it, but it's not enough.

Ford's 3-row SUV to be released in 2025

Ford has announced the next-generation SUV that could hit the market as early as 2025. The Verge experts believe that although specific details regarding the electric powertrain vehicle were scarce, the SUV will not be too different from the electric Ford Explorer only sold in Europe.

Ford also produces other electric vehicles, such as the F-150 Lightning and Mustang Mach-E.

Ford is also working on a second electric truck, known only as T3, which will be released in the future. Jim Farley, Ford CEO, hinted that the company would be launching a third-generation EV to increase its presence in the market.

Doug Field shares some new information on Ford EVs.

He says a three-row family SUV with a range of 350 miles will be available in 2025. He compared it to the Expedition. pic.twitter.com/FixnHKIj2Y

-- Michael Martinez (URL) May 22, 2023

The next-generation SUV may be powered by direct lithium extraction technology (DLE). A study by Goldman Sachs Global Metals & Mining found that DLE has the potential to revolutionize EVs.

The report also stated that DLE would likely widen the cost curve for lithium brine, not make it steeper. A typical project will probably fall into the second or third cost quadrant. With the additional lithium supply, we see a risk that DLE could increase the size and length of lithium surpluses/reduce deficiencies.

Albemarle Corp, whose stock is traded under ALB.N and Nemaska Lithium are two of the companies that announced battery supply agreements on Monday.

The cathode in lithium-ion battery is made up of Lithium Hydroxide. This ingredient is preferred because it has higher energy density and allows EV makers to store cells in smaller storage compartments.

Wall Street still has doubts

Ford showed its strength on Monday by setting ambitious goals, but according to a report from Reuters, Wall Street is unsure if it can compete in the EV world with Tesla and other legacy automakers.

Ford claims that it can increase production of EVs by 600,000 units before the end of the year.

The American automaker confirmed that it will have an annual adjusted income between $9 billion and $11 billion, before taxes and interest. It also said they would have a free cash flow of approximately $6 billion.

Ford Motor Company made its case for EVs at an Investor Event in Dearborn, Mich., sharing details of its plan to build millions of EVs profitably while growing its traditional business. #wealthcapital #stockmarket #signals #forexsignals #pips #forex #cryptocurrency #Indices pic.twitter.com/jCSfxvObKT

Wealth Capital (URL), May 23, 2023

The automaker insists that despite these projections its electric vehicle division is likely to suffer a loss of $3 billion for the entire year.

Ford has also stated that its electric truck will have a 30% lower labor and overhead costs compared to the current gas-powered model.

Ford can stay relevant in today's automotive industry by doubling down on its EV initiatives and armed with a number of battery deals.

Ford's growth is likely to be slowed by the competition from Tesla and Lucid Motors. Volkswagen has also signed a huge contract with Gotion, for its 1,000 km battery.