Ford expects to produce more than 2 million EVs annually by 2026

Driven by stronger-than-expected demand for electric vehicles, Ford has set ambitious global production targets of 600,000 EVs per year by late 2023 and more than 2 million by 2026. To put this in perspective, Tesla, currently the largest EV manufacturer, would have produced a record 936,000 EVs in 2021.

To ensure that it has enough batteries to support the production of all these EVs, Ford announced Thursday that it has signed a number of contracts with battery suppliers and suppliers of raw materials that will go into Ford's own battery production business. [Ford CEO Jim Farley, head of the new Model E EV and software division, said in a statement that "Ford's new lineup of electric vehicles is generating great enthusiasm and demand, and we now have the industrial systems in place to scale quickly."

Ford is "a leader in the electric vehicle industry.

Ford said its production goal of 600,000 EVs per year requires 60 gigawatt-hours of battery capacity. Ford plans to rely on suppliers such as CATL, LG Energy Solution, and SK On for the bulk of its batteries.

Only four models are expected to help Ford meet its goal of producing 600,000 EVs per year. These are the Mustang Mach E, the F-150 Lightning, various Transit commercial vans, and a crossover Ford is developing for Europe based on Volkswagen Group's MEB platform.

To meet its goal of producing more than 2 million EVs, Ford will also rely on its own battery plants under construction with partners. The first three plants will be owned and operated by a joint venture between Ford and SK On, and will be built in Kentucky and Tennessee, it was decided last fall.

Ford plans to invest more than $50 billion in EVs by 2026 and expects EV penetration to increase throughout the decade. Ford expects half of its production to be EVs by 2030 and, looking further ahead, has set a goal of achieving carbon neutrality by 2050.

Ford's EVs include the electric Explorer and the electric F-Series pickup truck. There will also be several electric Lincolns, whose styling was previewed by the Lincoln Star Concept unveiled in April.