Ford F-150 Lightning was just the beginning: Ford is making a big bet on electric cars

Ford F-150 Lightning was just the beginning: Ford is making a big bet on electric cars

Gasoline-powered cars will eventually disappear and be replaced by electric vehicles. Automakers know this, and Ford is the latest company to talk about its plans for an all-electric future.

Details of the switch in the U.S. are a bit murky, but with European governments planning to ban gasoline cars by 2030, Ford has announced that it will sell only EVs in that country by 2030. Or maybe even sooner.

The news comes from Kumar Harhotra, president of Ford's Americas and International Markets Group, and was announced shortly after the unveiling of the new all-electric Ford F-150 Lightning pickup.

Halhotra noted that the European and American markets are currently in very different places, and it is clear when Europe will transition to all-electric driving. In the U.S., that time has yet to come, but Ford is not at a stage where it can give a definitive date.

The company believes that by the time the Lightning goes on sale next year, it will have a better idea of what the future will bring. Meanwhile, Ford's biggest competitor, GM, is aiming for a complete zero-emission small car lineup by 2035. However, GM notes that consumer reaction could change that. [It's good news for Europe, but not so good news for the U.S. Ford, however, believes it can sell enough electric cars in the U.S. to enable domestic production of batteries by 2025.

Howe Tai Tan, Ford's chief product platform and operations officer, told CNBC that the company "doesn't need a battery plant large enough to justify its own dedicated battery plant." However, Tai Tan added, "By 2025, with the F-150, E-Transit, and another battery-electric vehicle we've announced, we will have enough units in North America to justify our own factory."

It is not certain what this new electric vehicle is that Tai Tan was referring to. Indeed, Ford has yet to make an official announcement. Therefore, we must look forward to the next few months.

Nevertheless, the exact timing of these battery manufacturing plans will vary depending on the EV market, consumer demand, and Ford's own R&D progress. Therefore, nothing is guaranteed, but it is pleasing to see that Ford has indicated plans for the future.

Furthermore, the ability to produce batteries in-house in the US has some distinct advantages. Transportation costs are less, especially if the cars are assembled domestically. The manufacturing process should also be sped up because of the shorter distances required to transport the finished batteries. Not having to rely on third parties would also mean that Ford would have better control over the entire situation.

Ford has recently committed to major investments in battery technology, including an investment in EV startup Solid Power in hopes of developing solid-state batteries for future electric vehicles. It also announced a $185 million investment in a new battery laboratory, another step toward manufacturing its own batteries.

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