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Industry scramble for cheaper battery chemistry upends plans

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Ford, for example, delayed Explorer production so it could switch to lower-cost, higher durability battery tech

Ford had planned to start production of its electric Explorer compact SUV in Germany late last year, but then came the order from CEO Jim Farley himself: wait. The six-month pause allowed the company to switch to using lower-cost, higher durability lithium iron phosphate batteries sourced from China’s CATL.

“The introduction of LFP battery technology is expected to reduce battery costs by one-third,” said Volkswagen Group CFO Arno Antlitz on the company’s first quarter earnings call. More car makers in Europe are starting to offer the battery technology in new models, including the affordable Citroen ë-C3 supermini, which goes on sale next month priced from £21,990.

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