Ford eyes producing own batteries for electric vehicles

Ford Motor Co. is getting into the battery-making game with plans to develop its own lithium-ion batteries for electric cars, the latest auto maker to bring the critical technology in-house as the industry rushes to sell more plug-in cars, Report informs referring to The Wall Street Journal (WSJ).

Ford said it plans to open a $185 million battery-development center in southeast Michigan next year. The Dearborn, Mich.-based auto maker eventually plans to manufacture its own battery cells, product chief Hau Thai-Tang said during a media call.

Major auto makers are diverting much of their capital spending into electric vehicles, prodded by tougher emissions regulations globally and the emergence of electric-vehicle leader Tesla Inc. and a slate of startups.

Some legacy car companies are following Tesla’s lead by making electric-vehicle components in-house rather than relying on outside suppliers. Batteries are by far the most expensive component of plug-in cars, accounting for a quarter or more of the vehicle’s total cost, and factories to make battery cells require huge outlays of capital.

Ford’s move follows General Motors Co. and Volkswagen AG, both of which already are investing in factories through partnerships with battery makers.

Batteries for Ford’s earliest plug-in models will come from outside suppliers. Battery cells for an electric version of Ford’s popular F-150 pickup truck due out next year, for example, will come from SK Innovation Co. of South Korea.