Only two months after starting customer deliveries of the 2022 F-150 Lightning, Ford has bumped pricing on its all-electric pickup truck by as much as $8,500, depending on the trim level.
When it made the announcement last week, Ford cited "significant material cost increases and other factors" as the main reasons for the price hikes. Now, CEO Jim Farley has provided more details about the price adjustment.
According to CNBC, the executive said at an August 10 event at the company's Michigan Assembly Plant that he does not expect the cost of raw materials for electric vehicles to ease in the near future, suggesting that Ford and other automakers will continue hiking prices for their EVs.
"I don't think there's going to be much relief on lithium, cobalt and nickel anytime soon."
Prices of lithium, cobalt and nickel have risen sharply over the past year amid increased demand from battery makers.
Farley cited fast-rising costs of the minerals used in Ford's current lithium-ion batteries as the main reason why the automaker plans to offer lower-cost lithium iron phosphate (LFP) batteries in vehicles such as the F-150 Lightning and Mustang Mach-E.
"I don't think we should be confident in any other outcomes, than an increase in prices. That's why we think LFP technology is critical… We want to make these affordable."
Farley's comment about LFP batteries follows Ford's announcement last month that it will begin offering LFP batteries from Chinese battery manufacturer CATL as a lower-cost option in the Mustang Mach-E starting from 2023. The automaker also said it planned to expand the option to the F-150 Lightning in 2024.
Besides working towards offering cheaper LFP batteries in the future, Ford is also looking at solid-state batteries as an alternative in the future. The company has invested in Colorado-based battery startup Solid Power, one of several companies developing solid-state batteries for EVs.
Solid-state batteries are said to offer more range, shorter recharging times and a lower risk of fires that today's batteries. Earlier this week, Solid Power said it's on track to deliver prototype batteries to Ford and BMW by the end of the year. However, the technology is still at least a few years away from reaching production.