Batteries account for 20-40 percent of an EV’s cost. … Battery manufacturers initially believed government anti-gas policies would create an unprecedented business opportunity and enable them to meet the EV manufacturers’ needs. But it has become apparent that the battery manufacturers may not control their own destinies.
On Thursday, the automaker announced it’s expecting a $3 billion loss due to Model e investments geared to rapidly boost production of electric vehicles to an annual rate of 600,000 globally by the end of 2023 and two million in 2026.
“As everyone knows, EV startups lose money while they invest in capabilities, develop knowledge, build volume and gain share,” Ford CFO John Lawler told media ahead of an investor call Thursday.
Model e reportedly lost $2.1 billion in 2022 and its cumulative 2021 through 2023 loss is projected at $6 billion.
Earth minerals like nickel, lithium and cobalt are essential for building EVs and their batteries, but recently, mineral shortages and closures of domestic mines could threaten the U.S. auto industry’s ability to produce enough EVs by the Biden administration’s 2035 goal.
