Ford CEO Jim Farley sees a host of electric cars ahead priced at around $25,000 as lower cost batteries become available.
Ford Motor Company says it wants to be the Tesla of battery-powered commercial vehicles. To that end, it is building four new vehicle and battery manufacturing facilities in Tennessee and Kentucky. This week, it announced it will invest $3.7 billion to retool three existing factories in the Midwest, one of which will build a new electric commercial vehicle at an existing factory in Ohio, according toFord already builds the E-Transit in Kansas City.
Today, the battery alone costs around $18,000 and the onboard charger another $3,000. So what makes Farley so optimistic? According toFarley believes new battery chemistries are coming that will avoid such raw materials as cobalt and nickel, which have seen sharp increases in their prices this year. There are also new batteries that use sodium or sulfur in place of lithium, although they are not in mass production yet.
Ford also plans to boost profits by selling software services such as driver assist and autonomous driving features that could be rented for a period of time or by the mile. It all adds up to erasing the $25,000 difference between electric cars and conventional cars even with raw material costs expected to rise, Farley said.
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