In a recent statement, Ford Motor’s CEO, Jim Farley, highlighted that the company’s primary competition in the electric vehicle (EV) market is not Tesla or General Motors but rather Chinese automakers.
Jim Farley, during the Morgan Stanley Sustainable Finance Summit, emphasized that Chinese automakers, such as BYD, are Ford’s main competitors in the electric vehicle sector. He praised BYD as an impressive company that has successfully developed and sold EVs, initially in China and now in Europe.
Farley cited BYD as an example of a vertically integrated and aggressive Chinese automaker that has remained committed to electric vehicles from the beginning.
The growth and success of BYD, along with other Chinese automakers, have been acknowledged by industry experts and investors. Philip Ripman, a portfolio manager at Storebrand Asset Management, highlighted BYD’s accomplishments in sodium-ion battery technology, which could potentially replace lithium batteries. This development may lead to more affordable EVs and increased profit margins for BYD.
Farley also pointed out that BYD possesses battery advantages over the current industry standard of lithium-ion batteries. To keep up with the competition, Ford recently announced a collaboration with China’s Contemporary Amperex Technology Co., or CATL, to establish a new battery plant in Michigan. This facility will produce lithium iron phosphate batteries (LFP), which are cheaper compared to the nickel cobalt manganese batteries with lithium that Ford currently uses.
Farley expressed concerns about political factors obstructing the adoption of cost-effective EV technologies in the United States. He warned that such obstacles could lead to higher prices for consumers. Despite potential challenges, Farley acknowledged the Chinese automakers as interesting and important players in the EV market.