Ford Partners with CATL to Boost EV Battery Game
Ford is stepping up its electric vehicle (EV) game by partnering with Chinese battery giant CATL. This move comes as China leads the world in lithium-ion battery production and EV battery technology, posing a significant challenge to US automakers like Ford.
China currently controls a staggering 83% of global lithium-ion battery production, according to Bloomberg. Ford CEO Jim Farley admits that the US is lagging behind China in EV battery technology by at least a decade. To bridge this gap, Ford is opening BlueOval Battery Park in 2026 to produce lithium iron phosphate (LFP) batteries using CATL's technology.
The race to secure advanced battery technology is crucial for maintaining industrial dominance in the EV era. Ford is developing a more affordable EV to counter competition from Chinese automakers like BYD, which have already made inroads in key markets. Ford must leverage Chinese battery intellectual property (IP) to remain competitive globally, as per Ford CEO Jim Farley.
Interestingly, the lithium iron sulfate battery technology that CATL uses was originally developed in the US. However, it was later acquired by Chinese firms, highlighting the global shift in EV battery technology.
Ford's partnership with CATL signals a strategic shift in the US automaker's approach to EV battery technology. As China continues to lead the market, Ford must innovate and adapt to maintain its competitive edge in the global EV market.
