Ford's EV Battery Strategy: A Game Changer in 2025?

As we approach 2025, the electric vehicle (EV) market is heating up, and one company that's making waves is Ford Motor Company (F). With its ambitious plans to lead the EV revolution, Ford is positioning itself as a strong contender in the EV battery stock arena. But is Ford the best EV battery stock to buy in 2025? Let's dive into the company's strategy and find out.



Ford's battery sourcing strategy is a key factor in its competitive edge. The company has taken several steps to make its battery production more cost-efficient and competitive:

1. Localization of battery production: Ford is moving its battery production closer to home, taking advantage of cost efficiencies and Inflation Reduction Act tax credits. This localization strategy reduces transportation costs and allows Ford to leverage regional resources and labor, making its battery sourcing more cost-effective (Source: Ford's announcement, October 7, 2024).
2. Diversification of battery suppliers: Ford has secured battery cell capacity from multiple suppliers, including Contemporary Amperex Technology Co., Ltd. (CATL), LG Energy Solution (LGES), and SK On. This diversification helps Ford negotiate better prices, ensure a steady supply, and mitigate risks associated with relying on a single supplier (Source: Ford's announcement, July 21, 2022).
3. Investment in battery technology and manufacturing: Ford has invested in battery R&D, including the establishment of Ford Ion Park, a global battery center of excellence. This investment allows Ford to develop and manufacture battery cells and batteries more quickly, efficiently, and cost-effectively (Source: Ford's announcement, May 20, 2021).
4. Use of LFP (lithium iron phosphate) battery chemistry: Ford is adding LFP cell chemistry to its portfolio, which is cheaper and more abundant than the NCM (nickel cobalt manganese) chemistry. LFP batteries also have a longer lifespan and better thermal stability, reducing the need for expensive cooling systems (Source: Ford's announcement, July 21, 2022).
5. Strategic partnerships: Ford has formed strategic partnerships with companies like SK Innovation to create joint ventures, such as BlueOval SK, which produce battery cells and array modules in the U.S. These partnerships help Ford secure a steady supply of batteries at competitive prices (Source: Ford's announcement, May 20, 2021).

Ford's realignment of battery production in the U.S. also leverages the Inflation Reduction Act (IRA) tax credits. By moving production closer to home, Ford can take advantage of these incentives, reducing its production costs and improving its capital efficiency. This realignment is expected to have a positive impact on Ford's financials, as the company can lower the cost of its EVs, leading to increased sales and market share.

In addition to its battery sourcing strategy, Ford is addressing current market demands and customer preferences by introducing hybrid SUVs and electric commercial vans. These moves cater to the popularity of larger vehicles, reduce range anxiety, and capitalize on the growing demand for electric commercial vehicles. By targeting these segments, Ford can maintain and potentially grow its market share, as the company leverages its strengths in commercial vehicles and responds to evolving customer needs.



In conclusion, Ford's EV battery strategy, combined with its focus on addressing current market demands and customer preferences, positions the company as a strong contender in the EV battery stock arena. With its cost-efficient battery sourcing strategy, strategic partnerships, and commitment to sustainability, Ford is well on its way to becoming the best EV battery stock to buy in 2025. As an investor, keeping an eye on Ford's progress and considering its EV battery stock potential could be a wise move in the ever-evolving EV market.