Building on strong demand for its new EVs, Ford has announced a series of initiatives for sourcing battery capacity and raw materials that light a clear path to reach its targeted annual run rate of 600,000 electric vehicles by late 2023 and more than 2 million by the end of 2026.
The company detailed its global vehicle portfolio plans supporting these production goals as part of its Ford+ plan. Ford expects a compound annual growth rate for EVs to exceed 90% through 2026, more than double the forecasted global industry growth.
“Ford’s new electric vehicle lineup has generated huge enthusiasm and demand, and now we are putting the industrial system in place to scale quickly,” said Jim Farley, Ford’s president and CEO and president of Ford Model e. “Our Model e team has moved with speed, focus and creativity to secure the battery capacity and raw materials we need to deliver breakthrough EVs for millions of customers.”
Ford plans to invest over $50 billion in EVs through 2026, targeting total company adjusted EBIT margins of 10% and 8% EBIT margins for EVs by 2026.
As Ford creates a new EV supply chain that upholds its commitments to sustainability and human rights, the company continues to plan for more than half its global production to be EVs by 2030 and achieving carbon neutrality globally no later than 2050.
Ford in Europe on track to go all-electric by 2035
In Europe, the Ford Cologne Niehl Plant is currently undergoing major construction updates to prepare for the production of electric vehicles, starting in 2023. This includes the construction of a new 2500 square meter building that will be the home of the new and efficient pre-coating line on five floors.
Furthermore, the current manufacturing facilities will be updated with new energy efficient solutions that will save more than 2,000 tons of CO2 and more than 2,600 MWh of electric energy per year.
The first electric passenger vehicle is expected to roll-off the Cologne production line in 2023, with a second EV model to be built starting in mid-2024. Annual volume at the new plant is expected to reach 200,000 vehicles per year.
The redevelopment of the Niehl plant is a significant step towards helping Ford achieve an all-electric future in Europe and contributes to its target to be carbon neutral across its European footprint of facilities, logistics and suppliers by 2035.
