Ford wants EV batteries greater than semiconductor chips, CEO says

Ford Motor wants batteries for its electrical automobiles greater than semiconductor chips, CEO Jim Farley informed CNBC’s Jim Cramer on Thursday.

His feedback come after the Detroit automaker shut down buyer reservations for an upcoming electrical model of the F-150 after they hit 200,000 items, which is greater than double Ford’s annual manufacturing capability for the car. The electrical F-150 Lightning is scheduled to go on sale within the spring.

“We’ll get the semiconductors, that is a matter of prioritizing the (battery-electric automobiles) over the (inside combustion engine) automobiles,” Farley stated throughout a webcast for the CNBC Investing Membership with Jim Cramer. “The problem is batteries. That is what we’ve to resolve.”

Farley stated the automaker is “utterly oversubscribed with our battery electrical automobiles,” particularly the F-150 Lightning. He informed CNBC final week that Ford was doing “no matter it takes” to double manufacturing capability for electrical F-150 pickup.

Farley’s feedback could shock many because the automaker continues to cope with a world scarcity of semiconductor chips that has wreaked havoc this 12 months on the worldwide automotive business.

Automakers like Ford are more and more placing offers to supply supplies and elements for electrical automobiles, particularly batteries, to probably keep away from provide chain interruptions just like the chips scarcity has highlighted.

There’s fear by some Wall Road analysts that demand for EVs will exceed the anticipated provide of essential supplies comparable to lithium, creating an issue for automakers to supply the automobiles.