WAYNE, Mich. – Ford Motor CEO Jim Farley doesn’t count on the prices of uncooked supplies for the corporate’s electrical autos to ease within the close to future, marking the most recent sign that automakers will proceed climbing costs for his or her new EVs.

“I do not suppose there’s going to be a lot reduction on lithium, cobalt and nickel anytime quickly,” Farley informed reporters Wednesday throughout an occasion on the automaker’s Michigan Meeting Plant.

Farley’s feedback come a day after the Detroit automaker introduced it will be elevating the beginning costs for its electrical F-150 pickup attributable to “vital materials value will increase.” The will increase vary from $6,000 to $8,500, relying on the mannequin. Ford is not alone: Rival Tesla elevated its U.S. costs in June.

Costs of all lithium, cobalt and nickel have risen sharply over the previous yr as demand from battery makers has outpaced miners’ efforts to extend provide.

Farley stated the fast-rising prices of the minerals utilized in its present lithium-ion batteries are why Ford plans to supply lower-cost lithium iron phosphate, or LFP, batteries in autos such because the F-150 Lightning and Mustang Mach-E crossover.

“I do not suppose we ought to be assured in another outcomes, than a rise in costs,” he stated. That is why we predict LFP expertise is vital … We need to make these inexpensive.”

Final month, Ford stated it’s going to start providing LFP batteries from Chinese language battery large CATL that do not use nickel or cobalt as a lower-cost choice within the Mustang Mach-E subsequent yr. The corporate plans to broaden the choice to the F-150 Lightning in 2024.

Ford additionally has invested in Colorado-based battery startup Strong Energy, one in all a number of firms working to develop solid-state batteries for electrical autos. Strong-state batteries have the potential to supply EV house owners extra vary, shorter recharging occasions, and a decrease danger of fires than right this moment’s batteries.

Strong Energy stated Tuesday that it is on monitor to ship prototype batteries to Ford and BMW, additionally an investor, by the top of the yr. However autos utilizing the batteries are nonetheless a minimum of a number of years away.