Published , by Ozzie Mejia
Published , by Ozzie Mejia
Those looking to invest in an electric vehicle in the future may be discouraged to hear that it's going to cost a pretty penny to do. Ford Motor CEO Jim Farley's outlook on the future of EVs isn't a positive one, as he expects that the continuing supply issues with lithium, cobalt, and nickel will mean that EV battery costs will continue to rise.
"I don’t think there’s going to be much relief on lithium, cobalt and nickel anytime soon," Farley told reporters on Wednesday night (via CNBC). The comments come in the wake of Ford raising the starting prices for its electric F-150 pickup truck line by $6,000 to $8,500 USD.
Concerns over the availability of battery supplies have been a recurring theme in the automotive industry and across tech. Competitor Tesla recently reiterated that entrepreneurs should explore lithium refining, noting the demand from various industries and the opportunity to profit off of that demand. In an effort to help stave off cripping supply issues and corresponding price hikes, the United States government recently announced that it would grant $2.5 billion to General Motors and LG Energy Solutions.
While the lithium shortage is addressed, Ford has stated that it will begin offering LFP batteries from Chinese battery manufacturer Contemporary Amperex Technology Co. Limited (CATL). These batteries do not use nickel or cobalt, which the automaker hopes will allow for a low sticker price on next year's Mustang Mach-E.
The lithium shortage, as well as the shortage on cobalt and nickel, continues to be something to monitor as demand for Electric Vehicles increases. We'll continue to watch this story at Shacknews and report back with any updates.