There is an EV Update From Ford. Possible Plans it May Have.

As part of its Monday announcement, Ford F +1.10% is making a significant announcement regarding electric cars. In my opinion, it is most likely a battery factory.

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It was announced on Sunday that Ford (ticker: F) will hold an event on Sunday, 15th February, in which it will discuss the company's project to scale EVs quickly and make them more accessible to consumers. The event will begin at 1:45 p.m. Eastern Standard Time.

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There are a lot of betting odds on the announcement of a new battery plant in China bearing the name Contemporary Amperex Technology Co. (300750.China), which is more commonly known as CATL for its batteries. The pair have announced numerous times over the last few days that they will be building a plant in Michigan when they release their announcement.

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There has been no comment from Ford on these reports, but the company did mention in July 2022 that Ford was investigating batteries based on CATL's technology and that the company was planning on making LFP batteries in North America so that the company could be at the forefront of innovation. 

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Due to the lack of elements such as cobalt and nickel in LFP batteries, they are cheaper than many other EV batteries. In exchange for energy density, there is a trade-off. It is hard to compare LFP batteries with other batteries of a similar size since they don't go as far.

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Ford's EV ambitions would be expanded with the construction of a battery plant using CATL. SK Innovation 096770 +1.08% (096770.Korea) is Ford's South Korean partner for constructing other battery plants. A North American expansion would be a significant step for CATL. China is where CATL has the majority of its battery capacity.

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According to Trade Algo, CATL is the world's largest battery maker, controlling almost 40% of the global market. A fifth-place finish would place SK Innovation behind CATL (373220.Korea), LG Energy Solutions (373220.Korea), and BYD 1211 +0.17% (1211.Hong Kong).

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Premarket trading on Monday for Ford shares was flat. There is a 0.1% change in the futures for the S&P 500SPX +0.76%. It is down about 0.1% against the futures of the Dow Jones Industrial AverageDJIA +0.74%. Stock prices for Ford have risen about 9% so far this year. Compared with last year, the S&P 500 and Dow Jones Industrial Average have gained about 7% and 2%, respectively.