Ford Motor Co. (NYSE: F) shares jumped 8.51% after the company announced it has increased its investment in electric vehicle future from $22 billion by 2023 to $30 billion by 2025. The car manufacturer announced fresh cash flow into the electric vehicle and battery development strategy called Ford+ during the investor day on Tuesday.
Ford outlines car electrification strategy
The company outlined a tech-centric strategy for electrification of its vehicle line and grew the commercial van and truck business. Most importantly, Ford increased the spending since it plans t5o eventually begin producing its EV batteries at two of its future US battery cell factories with SK Innovation Co.
Ford CEO Jim Farley is planning to enhance digital services and grow revenue from commercial sales. The company targets expansion of sales from services and sales of vehicles to commercial clients to $45 billion in the next four years. Also, executives informed investors that they expect 40% of Ford’s global deliveries to be fully electric at the turn of this decade. In Q1, 2021, Ford sold 6,614 Mustang Mach-Es and has since unveiled the F-150 Lightning this past week with over 70,000 reservations so far.
Automakers are focusing on producing their batteries
The Ford+ strategy reveals a new path the company will take to keep up with the4 EV future. In the past, most of the global battery manufacturing has been a thing in Japan, Korea, and China. However, with major OEMs starting to develop EVs, demand has outstripped supply, and as a result, car manufacturers have been pushed to invest in battery development. Besides Ford, General Motors is also building a battery plant in Ohio with LG, while BMW has joined Ford in investing in solid-state battery company Solid Power.