Ford is undertaking a significant transformation in its electric vehicle (EV) strategy, centered around its new Universal Electric Vehicle (UEV) Platform. This ambitious project not only redefines vehicle design and manufacturing but also necessitates a fundamental shift in battery technology. The decision regarding which battery chemistry to adopt was a critical and high-stakes moment for the company.
The Critical Battery Decision for Ford’s Next-Gen EVs
Alan Clarke, executive director of Advanced EV Development at Ford and a former Tesla veteran, revealed the intense deliberation behind the battery choice during a recent appearance on the InsideEVs podcast. He described the period three years ago, when the decision was made, as one of the most nerve-wracking of the entire project.
“The team was the smallest when we made that decision three years ago,” Clarke stated. “And the risk, the capital risk, was extremely high, because we pretty much said, whatever we decide, we’re going to build a battery factory to make these batteries. And that’s a big decision.”
The team meticulously evaluated various cell types and chemistries, analyzing extensive mass and cost data. They also designed numerous battery packs from the ground up. This rigorous process ultimately led them to select lithium iron phosphate (LFP) cells for the inaugural vehicle built on the UEV architecture.
LFP Batteries: A Strategic Choice for Affordability and Durability
This first vehicle will be a midsize pickup truck, slated for production next year with an anticipated price point of $30,000. The LFP cells chosen for this truck will be prismatic in shape, offering a rectangular form factor as opposed to the cylindrical cells favored by Tesla or the pouch cells used in Ford’s F-150 Lightning and Mustang Mach-E.
Ford plans to manufacture these LFP cells at a new facility in Michigan, utilizing technology licensed from CATL, a leading global battery producer based in China. This strategic move underscores Ford’s commitment to controlling its battery supply chain and leveraging established expertise.
The rationale for selecting LFP technology is well-supported by industry trends. LFP batteries are known for their enhanced durability and significantly lower cost compared to high-nickel chemistries, which have historically been prevalent in passenger EVs. These advantages have driven the rapid adoption of LFP cells, making them increasingly common in the electric vehicle sector.
Data from BloombergNEF indicates a substantial cost difference: LFP battery packs are projected to cost $81 per kilowatt-hour by the end of 2025, in contrast to $128/kWh for nickel manganese cobalt (NMC) packs. This cost-effectiveness has propelled LFP to become the dominant battery chemistry globally for the first time in 2025.
Cost Savings and Packaging Advantages Drive LFP Adoption
Cost is a paramount consideration for Ford, particularly as it aims to introduce an EV priced at $30,000—a rare offering in the U.S. market. The company seeks to ensure this affordable vehicle is both appealing to consumers and profitable. “We get the lowest cost for the first product with this chemistry,” Clarke emphasized.
However, cost was not the sole driver. Clarke highlighted an additional, strategic benefit: designing the UEV platform to accommodate LFP cells first addressed what his team considered the most significant engineering challenge. LFP batteries are generally heavier and possess lower energy density than high-nickel alternatives.
“We assumed it would be the least energy dense chemistry that we’d put into the platform. So it would take up the most amount of space and be the heaviest. And so, at the end of the day, it should in theory be the hardest thing that we ever designed,” Clarke explained.
A Platform Designed for Future Flexibility
By tackling the packaging and weight challenges associated with LFP from the outset, Ford has created a flexible platform. This approach ensures that future vehicles on the UEV architecture, when equipped with higher-performance chemistries, are expected to achieve even greater range.
Conversely, if Ford had initially designed the platform for energy-dense NMC cells, it might have lacked the necessary packaging space to incorporate a more affordable LFP variant with satisfactory specifications later on. This forward-thinking design strategy allows Ford to offer a range of performance and cost options within its new EV lineup.
Looking Ahead: The New EV Truck and Future Prospects
While Ford has generated considerable excitement around its upcoming $30,000 EV truck, concrete details regarding its specifications and range remain limited. The automaker has stressed a strong focus on aerodynamics for the midsize pickup and aims to deliver competitive range without relying on overly large or expensive battery packs.
The company has also revealed a novel “assembly tree” concept intended to replace the traditional assembly line, a system Ford itself pioneered a century ago. Teaser images suggest a more streamlined and less conventional pickup truck design compared to existing models like the F-150 or Maverick.
Given Ford’s recent challenges, including significant writedowns on cancelled EV projects like the F-150 Lightning, the success of the UEV platform and its initial truck offering is crucial. The company is placing considerable expectations on these new products to meet market demands and drive future growth in the competitive EV landscape.