Where Does Ford Source Its Electric Vehicle Batteries?
Ford sources batteries from multiple global suppliers, including SK On (South Korea), CATL (China), and LG Energy Solution. Their joint venture BlueOval SK will produce batteries domestically in Kentucky and Tennessee by 2026. Ford also imports LFP batteries from CATL for cost-effective models like the Mustang Mach-E.
How Does Ford Ensure Battery Supply for Its EVs?
Ford secures battery supply through strategic partnerships, long-term contracts, and joint ventures. The $11.4 billion BlueOval SK project aims to produce 129 GWh annually by 2030. Multi-sourcing from SK On, CATL, and LGES minimizes regional supply risks while meeting IRA incentives for U.S.-made components.
To further stabilize supply chains, Ford has implemented a “buffer stock” strategy, maintaining 2-3 months of battery inventory at all times. The company recently signed a 10-year lithium hydroxide deal with Liontown Resources, securing 150,000 metric tons annually from Australian mines starting in 2026. This complements existing agreements with Rio Tinto for Canadian lithium and Compass Minerals for Utah-based lithium brine extraction. Ford’s Battery Supply Chain Director, Michael McCarron, notes: “Our three-dimensional approach – vertical integration, geographic diversity, and multi-chemistry solutions – ensures production continuity even during material shortages.”
Which Companies Manufacture Batteries for Ford?
Key suppliers include SK On (high-nickel NCM batteries), CATL (LFP cells), and LG Energy Solution. Ford’s BlueOval SK joint venture will add 3 US plants by 2025. CATL provides lithium iron phosphate batteries through a technology licensing model for Mustang Mach-E and F-150 Lightning base models.
| Supplier | Battery Type | Production Locations |
|---|---|---|
| SK On | Nickel-rich NCM (9:0.5:0.5) | Georgia, USA (current); Kentucky/Tennessee (2026) |
| CATL | LFP (Lithium Iron Phosphate) | Ningde, China; Licensing in Michigan |
| LG Energy Solution | NCMA (Nickel-Cobalt-Manganese-Aluminum) | Poland; Ohio, USA (2025) |
What Battery Technologies Does Ford Use?
Ford utilizes nickel-cobalt-manganese (NCM) for long-range models (Extended Range Lightning) and lithium iron phosphate (LFP) for entry-level variants. Dual chemistry strategy balances performance and cost. Future plans include cobalt-free NMx batteries and solid-state cells through $500M investments in Solid Power.
The second-generation LFP batteries entering production in 2025 will feature cell-to-pack technology, increasing energy density to 160 Wh/kg while reducing weight by 15%. Ford’s Advanced Engineering team is testing dual-layer pouch cells that combine NCM and LFP chemistries in single modules, potentially offering both high energy density and thermal stability. “Our Gen 3 batteries will deliver 400-mile ranges across all trim levels,” reveals Chief Engineer Linda Zhang. “The hybrid chemistry approach lets customers choose between maximum range or lowest cost without compromising safety.”
“Ford’s multi-sourcing strategy cleverly balances IRA compliance with technology diversity,” says Dr. Elena Rodriguez, EV supply chain analyst. “By combining SK’s NCM expertise, CATL’s LFP scale, and in-house engineering, they’re building redundancy against trade wars while pushing battery costs below $100/kWh – the tipping point for mass EV adoption.”
FAQs
- Does Ford make its own EV batteries?
- Not yet. Ford currently sources from suppliers but will produce batteries through BlueOval SK starting 2026. The joint venture with SK On will operate 3 US plants capable of powering 1.3 million EVs annually.
- Are Ford EV batteries recyclable?
- Yes. Ford partners with Redwood Materials to recycle 90% of battery components. The closed-loop system recovers lithium, cobalt, and nickel for reuse in new batteries, reducing mining needs by 70% per subsequent generation.
- Which Ford EVs use LFP batteries?
- Standard-range Mustang Mach-E and F-150 Lightning models use CATL-sourced LFP batteries. These cobalt-free packs offer lower cost and longer cycle life, though with 10-15% lower energy density versus NCM batteries.
Ford’s battery procurement combines global partnerships, domestic manufacturing, and technology diversification. Through strategic alliances with SK On, CATL, and LGES, coupled with $30B+ EV investments through 2025, Ford aims to secure 240 GWh annual capacity – enough for 2 million EVs yearly. This multi-pronged approach addresses cost, regulation, and supply chain volatility in the lithium era.