Ford CEO Jim Farley says Ford’s need for batteries for its electric cars goes beyond the semiconductor problem. Automakers have been buying batteries and other parts for electric vehicles since orders soared, as companies want to avoid the same disruptions in supply chains caused by semiconductor shortages.
The semiconductor problem seems to be overshadowed when car manufacturers are now investing in electricity. Then instead, the focus is on batteries.
“The problem is the batteries. That’s what we have to solve,” sa Fords vd Jim Farley to CNBC during Thursday.
The statement came at a time when the automaker was forced to halt orders for the electric version of the F-150 to be released this spring, which has already reached 200,000 orders.
He added that interest in electric vehicles was growing among consumers, especially for the F-150, and that Ford would do “anything” to double the production capacity of the electric truck.
Demand is greater than supply
This means Ford and other automakers are quickly trying to get the batteries and other materials needed for the conversion process, but the problem is that demand appears to be much greater than the current supply of raw materials like lithium.
According to Wall Street analysts, this will cause the same kind of turmoil that we saw during the semiconductor crisis.
“Entrepreneur. Freelance introvert. Creator. Passionate reader. Certified beer ninja. Food nerd.”