During Monday’s Capital Markets Day, Ford provided an in-depth look at its upcoming second-generation electric vehicles (EVs), which include a new full-size pickup truck and a three-row SUV. These new models are expected to contribute significantly to Ford’s EV goals in the coming years.
Remaining committed to its strategy of introducing EVs in segments where the brand has a strong presence, Ford converted some of its popular models into electric vehicles for the first generation. This included the successful Mustang Mach-E and the Ford F-150 Lightning, both of which have been well-received by consumers.
Building on its renowned expertise in producing trucks, Ford is set to introduce another full-size electric pickup, codenamed Project T3. This project was initially announced in March, with Ford’s CEO Jim Farley likening it to the iconic Millennium Falcon, complete with a functional back porch.
Emphasizing efficiency and cost reduction, the electric truck will feature minimal trims and a streamlined manufacturing process. Similar to the F-150 Lightning, it will be designed to cater to work-related tasks and will offer continuous software updates via over-the-air technology (OTA).
In addition to the electric pickup, Ford will introduce a new three-row electric SUV designed specifically for road trips. It boasts a spacious interior and an impressive range of up to 350 miles (300 miles at a cruising speed of 75 mph). Ford ruled out the possibility of an electric Expedition due to its large size and excessive battery resource requirements. Instead, the new SUV will feature a battery one-third the size, maximizing tire and propulsion efficiency to optimize its range.
Ford’s new electric SUV will also incorporate fast-charging capabilities, enabling a range of 150 miles to be obtained in less than 10 minutes. Furthermore, the company aims to make the vehicle affordable, although specific pricing details have yet to be disclosed.
In anticipation of the increasing demand for batteries, Ford has secured agreements with key suppliers. Albermarle will provide over 100,000 metric tons of battery-grade lithium for approximately 3 million future Ford electric cars over a five-year period starting in 2026. Additionally, Nemaska has agreed to supply up to 13,000 tons of lithium hydroxide annually for 11 years.
Ford’s strategic move to establish BlueOval SK, expected to begin operations in 2026, aims to offer the most cost-effective EV batteries in the United States.
Furthermore, Ford is introducing an enhanced distribution model that aims to improve the buyer and ownership experience. This model will eliminate the need for price negotiations at dealerships and provide flexible purchase options, including replenishment centers that accelerate vehicle deliveries, ensuring customers receive their vehicles in under 10 days.
To achieve its goal of an 8% EBIT margin by the end of 2026 in its Model e segment, Ford will continue to reduce costs and enhance efficiency in its first-generation EV products. Ford anticipates that its second-generation electric vehicles will achieve positive earnings before interest and taxes (EBIT) in their first year.
Ford also has high hopes for its BlueCruise technology, predicting that it will contribute around 20% of the Ford Model e’s EBIT margin by 2026. BlueCruise offers a revenue source with higher margins and reduced cyclicality, which Ford plans to further develop and scale.
As a result of these strategic initiatives, Ford believes it is less vulnerable to the industry-wide transition to electric vehicles compared to other automakers. By capitalizing on its strong brand identity and leveraging its expertise in trucks, Ford is poised to make significant strides in the EV market.
