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The head of Ford assessed the US's lag behind China in the field of electric vehicles. For example, Jim Farley made it clear that China is ten years ahead of the US in the production of batteries for electric vehicles, and the only chance for Ford to start competing with Chinese brands and then get ahead is to use China's intellectual property.
Jim Farley emphasized that the threats from the Chinese auto industry can only be prevented if China's technical knowledge and experience are used. The Ford boss recalled that 20 years ago, Chinese companies needed US intellectual property, but now it's the other way around. The top manager called the upcoming race "a battle to save American industry."
Jim Farley is talking about building a factory to produce lithium-iron-phosphate batteries under license from Chinese giant CATL. The “gigafactory” could open in 2026, unless US sanctions intervene. The Ford top manager’s frankness is probably due to the fact that the $3,5 billion joint project is under threat.
Interestingly, LFP batteries were originally invented at the University of Texas, and the technology was commercialized in the US during the Obama era. However, the American startup producing batteries for electric vehicles went bankrupt, and the development was bought out by the Chinese for next to nothing. Now China controls 83% of the production of lithium-iron-phosphate batteries, and it is almost impossible to make a cheap electric car without Chinese technology.
