Ford Affordable EV: Ford Says $30,000 Electric Cars Are “Right Around the Corner,” LFP Battery Production Key

Ford Affordable EV: Ford Says $30,000 Electric Cars Are “Right Around the Corner”

Ford Affordable EV initiative is gaining momentum, with CEO Jim Farley claiming that new, more accessible electric vehicles priced around $30,000 are “right around the corner.” Despite a challenging market—marked by the expiration of the federal EV tax credit and a subsequent 25% drop in Ford’s EV sales in October—the automaker is pushing ahead with its long-term growth plan. This strategy hinges on the new Ford Affordable EV platform, with production tooling set for installation at the Louisville Assembly Plant by the end of the year, alongside the start of LFP battery cell production in Michigan.

$30,000 EVs: Almost a Reality, Despite Market Headwinds

Ford’s push for a mass-market EV comes at a crucial time when price has become the major factor for prospective buyers.

• Launch Timeline: CEO Jim Farley stated the Ford Affordable EV is “right around the corner,” with vehicle testing underway and sourcing at 95% completion.
• Production Backbone: The new affordable models will be based on the Ford Universal EV platform, designed for low-cost and flexible manufacturing.
• Manufacturing Start: Ford plans to install new equipment at its Louisville Assembly Plant by the end of the year, where the new affordable EVs will be assembled.
• Battery Localization: A key element in cost reduction is the plan to start production of Lithium-Iron-Phosphate (LFP) battery cells in Michigan, which will “truly lower costs”.

Market Context and Strategy

Ford is maintaining its long-term commitment to electrification despite recent setbacks that have plagued the market.

• Sales Decline: Ford sold only 4,700 EVs in the US last October, a 25% drop compared to the same period last year, following the expiration of the $7,500 EV Tax credit.
• Conservative Forecast: Farley predicts that EV market penetration will stabilize at around 5% in the U.S., well below the original expectation of 7.5%.
• Strategic Pivot: The company has temporarily suspended production of the F-150 Lightning at the Rouge EV center to focus resources on its profitable ICE (Internal Combustion Engine) and Hybrid models. This demonstrates a dual strategy of scaling down high-cost EV production while accelerating the Ford Affordable EV platform development.

Final Thoughts

Ford’s commitment to delivering a Ford Affordable EV at the $30,000 price point is a critical long-term strategy that addresses the core need of the U.S. market. By localizing LFP battery production and leveraging a new flexible platform, Ford aims to capture the mass market and secure its future in the electric transition, positioning the Ford Affordable EV as a significant contender against rivals in the budget segment.

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