will provide LFP battery packs for the Ford Mustang Mach-E sold in North America starting next year and for the F-150 Lightning starting in 2024.

(Image credit: Ford China)

Ford today unveiled plans for additional power battery capacity to lock in supply and announced a global power cell supply agreement with Contemporary Amperex Technology Co Ltd (CATL, SHE: 300750).

CATL will supply lithium iron phosphate (LFP) battery packs for the Ford Mustang Mach-E sold in North America starting next year and for the F-150 Lightning sold in North America starting in early 2024, according to a press release issued by Ford today.

The flexibility of Ford's EV architecture ensures the efficient integration of CATL's CTP (cell to pack) LFP battery technology with Ford products, allowing for rapid capacity increases, the US auto giant said.

Ford and CATL also signed another non-binding memorandum of understanding for the latter to supply power batteries for future Ford EV models in China, Europe and North America, according to the release.

This is part of Ford's power battery capacity addition program, which aims to reach 60 GWh of annual capacity through the addition of an LFP battery solution and lock-in of related raw material supplies, ensuring an annual capacity target of 600,000 EVs by 2023.

Ford's target is broken down as follows:

270,000 Mustang Mach-E units, covering North America, Europe and China.

150,000 F-150 Lightning all-electric pickups, covering the North American market.

150,000 E-Transit units, covering North America and Europe.

30,000 new all-electric SUVs built for the European market, with a significant capacity increase in 2024.

As part of its power battery capacity expansion plan, Ford will add an LFP battery solution to its EV lineup in addition to its current ternary lithium batteries, further boosting hot product capacity, the company said.

In addition to its partnership with CATL, Ford will also further meet its 2023 power battery capacity targets through longtime supplier LG Energy Solution and strategic battery partner SK On.

Ford also announced that it will add 40 GWh of LFP battery capacity in North American starting in 2026 as a complement to its previously announced power cell plan.

Notably, Bloomberg reported on July 18 that CATL is considering building a manufacturing facility in at least two locations in Mexico, potentially supplying and Ford.

CATL is considering Ciudad Juarez, Chihuahua, and Saltillo, Coahuila, both near the Texas border, the report said, citing people familiar with the matter, adding that the company is considering investing as much as $5 billion in the project.

Ford delivers 969 Mustang Mach-E units in China in March