GM this month revealed plans for a second U.S. battery cell manufacturing plant, this time in Spring Hill, Tenn., with South Korean joint-venture partner LG Chem Ltd. The automaker also is building a battery plant in northeastern Ohio; each site represents a $2.3 billion investment.
Farley would not say whether Ford has specific plans for one or more U.S. battery plants.
“We’ll see,” he said. “We’re going to need lots of battery plants.”
The need to insource battery work has taken on new priority amid an ongoing microchip shortage that has upended the industry.
“It’s scaring everybody into making sure they have the proper supplies of all the parts they need,” Fiorani said.
Farley last week said he has been benchmarking nonautomotive companies that use chips and found that many have a safety stock or source them multiple ways.
“This has been a really key lesson and it comes on the eve of this change where the whole industry is moving to batteries as a key commodity,” Farley said. “I think chips are a great metaphor for the growing technology in our vehicles, including batteries.”
Fiorani said automakers that spent the past few decades outsourcing work to their supply base also may be attempting to differentiate their vehicles with key parts. Tesla held a “battery day” presentation last year that detailed proprietary advances it says will lower costs and improve performance.
“Batteries and motors are the new engines and transmissions,” Fiorani said. “It becomes part of the product.”