Ford CEO: Battery Is Third of Electric Car Cost
-One of the auto industry's most closely guarded secrets—the enormous cost of batteries for electric cars—has spilled out.
-Ford Motor Co. F -1.01%Chief Executive Alan Mulally indicated battery packs for the company's Focus electric car costs between $12,000 and $15,000 a piece.
-Ford is currently promoting its $39,200 Focus EV at events around the country. It has a 23 kilowatt-hour battery pack. A Ford spokeswoman said Mr. Mulally's comments were designed to provide a indication of the car's battery costs.
-Based on the price range that Mr. Mulally indicated, Dearborn, Mich.-based Ford appears to pay between $522 and $650 a kilowatt-hour for its electric-vehicle batteries. In the past, auto makers and battery makers have been reluctant to disclose the cost per kilowatt hour. Analysts have made projections that battery costs are between $500 and $1,000 per kilowatt-hour.
-Ford hasn't provided projections for anticipated sales of its EV, but has made the point that it doesn't need to achieve high volumes because it is building the Focus EV on the same line as the gasoline-powered version. It sold just 10 to fleet customers late last year and now is building more of the vehicles at its plant in Wayne, Mich.
-The Focus EV is a direct competitor to Nissan Motor Co.'s 7201.TO +0.24%Leaf, which sold about 9,700 in 2011 in the U.S. The Leaf starts at $35,200 and has a stated range of 73 miles on a full charge. Ford says its Focus can go up to 76 miles on a full charge and can be recharged in 3 ½ hours using a 240-volt wall charger, or about twice as fast as the Leaf.
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