If Ford didn’t want to lower the prices of its cars until then, the firm might finally change its mind. In fact, it’s preparing to offer less expensive LFP batteries in its Mustang Mach-E in Europe, but this could also benefit your finances.
Although the European Parliament has in turn voted in favor of banning the sale of electric cars in Europe in 2035, all manufacturers will have to adapt. This is particularly the case for Ford, which plans to offer only electric models from 2030 onwards in its catalogue. For this, the firm plans to invest massively, while aiming to sell 600,000 electric cars worldwide this year according to a press release.
If it did not plan to reduce the price of its cars, the blue oval firm seems to be reviewing its plans. As it announced in a press release, it is preparing to offer LFP batteries to its customers for its Mustang Mach-E. A strategic choice, which offers many advantages. Unlike NMC (nickel-manganese-cobalt) batteries currently in use, these batteries do not use cobalt and nickel.
These are two materials whose extraction is polluting, which in the end means that the electric car is not as clean as we explained in a previous article. Especially since the exploitation takes place in developing countries, under unethical conditions.
In anticipation of sodium and solid-state batteries, LFP (Lithium Iron Phosphate) batteries offer several advantages, including lower production cost and longer service life compared to NMCs. If the energy density is lower, with a slightly higher consumption to the detriment of autonomy, then recharging is done more quickly.
Which, therefore, is not a concern, since we have shown that wanting great autonomy is a mistake. Furthermore, more and more manufacturers prefer to opt for batteries that are smaller, lighter, less expensive to produce and therefore use less lithium, while some fear a shortage in the future. This is particularly the case for Ford, but also for Renault.
A price drop to be expected
The objective is, therefore, offer cheaper electric cars, but also to increase your profits. According to Ford, LFP batteries would allow reduce production costs by 10-15%. Therefore, the brand could increase its margin, instead of passing this cost reduction on to its customers. But while Tesla launched a major price war by lowering those of its Model 3 and Model Y by 13,000 euros a few weeks ago, the Dearborn firm has revised its plans.
Recently, in turn, it operated a sharp drop in its Mach-E, but only in the United States. Would Ford therefore be reviewing his plans? It may well be so, as it faces increasing competition from Chinese brands. Several of them have also lowered their prices, such as Xpeng.
Ford specifies in the press release that the arrival of these new LFP batteries is ” as part of the company’s commitment to make electric vehicles more affordable and accessible« .
Ford’s new LFP batteries will be offered in the Mustang Mach-E this year and will allow Ford to increase the profitability of its Model e electric division by 8% by 2026. The firm has also just announced an investment of 3,500 million dollars to build its own battery plant in Michigan, in partnership with the Chinese giant CATL . And this for a specific purpose, in particular to allow your customers to benefit from the $7,500 US Government Tax Creditas long as the batteries are manufactured in the territory.
These should then logically equip all future cars of the brand, starting with the future electric SUV based on the MEB platform provided by the Volkswagen group. An electric version of the Puma will also see the light of day in the course of 2025. In total, these are then two million brand electric cars that should be on the road at the end of 2026.
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