Ford Motor has secured the supply of enough batteries to produce 600,000 electric vehicles per year from next year. The American automaker announced this in a statement on Thursday.
The production target for the coming years is a huge step forward, as Ford only sold 27,140 plug-in vehicles in the United States last year.
The automaker has signed a contract with the Chinese battery supplier Contemporary Amperex Technology. Ford also reported that it has already secured 70 percent of its battery capacity to build more than 2 million electric vehicles annually from 2026, a target announced by CEO Jim Farley in March.
Ford announced it would invest more than $11 billion with South Korea’s SK Innovation in three battery plants and an electric car assembly plant in Tennessee and Kentucky. As a result, the company expects global demand for electric vehicles to grow by more than 90 percent per year.