Ford CEO Claims That China Is Ten Years Ahead Of The US In Battery Manufacture

Ford is keen to counter the challenge from China’s auto industry, yet it relies on China’s technical know-how to succeed, as stated by its CEO. John Farley, Ford’s CEO, mentioned in a New York Times interview that China has a ten-year lead in battery production for electric vehicles.

He believes that Ford’s only path to not only catch up but also surpass the Chinese auto industry is to leverage their technology. “To compete with them, we must tap into their expertise just as they required ours two decades ago. Then, we can apply our innovative ecosystem, American ingenuity, and our close relationship with users to outperform them globally,” Farley explained to the New York Times. “This will be one of the pivotal races crucial for the survival of our industry.” Farley’s comments reflect an immediate strategy rather than a distant plan. Ford’s ambitious BlueOval Battery Park is currently being built and aims to produce thousands of lithium-ion phosphate (LFP) batteries utilizing technology from China’s CATL once it opens in 2026.

Lithium-ion Phosphate Is The Way

The New York Times explains that CATL’s smart battery chemistry was originally developed in the US and then bought by the Chinese for “small money.”. Namely, LFP chemistry was discovered by scientists at the University of Texas and then commercialized by A123 Systems LLC, a startup that received a lot of money from the Obama administration. However, the electric vehicle market was slow to develop, and A123 collapsed; its remains, including the battery, were eventually bought by what was then China’s largest auto parts company. No one could have known a decade ago that electric vehicles would become such a big part of the automotive industry. But the Chinese decided that they would. Tesla did it too, before any other Western brand.

Ford is currently working on a small electric vehicle priced under $30,000 to compete with affordable electric cars from China that have not yet arrived in the US but are already being sold in other parts of the world.

• Also See: Ford Pleased With Fourth-Quarter Earnings And Revenue