⚡️ Ford's new battery tech

Plus: Amazon goes electric | Friday, July 22, 2022

Open in app View in browser   Presented By NYSE   Axios What's Next By Alex Fitzpatrick, Jennifer A. Kingson and Joann Muller · Jul 22, 2022 What's an automaker to do when electric car batteries are hard to come by? Joann has the answer in today's story. Today's Smart Brevity count: 1,056 words ... 4 minutes.     1 big thing: Ford's answer to EV supply chain hell Illustration: Gabriella Turrisi/Axios   Automotive giant Ford is shoring up its battery supply chain — partly by importing lower-cost, iron-based batteries — as it sprints to increase electric vehicle production, Joann Muller reports. Why it matters: Using cheaper, safer and more durable iron batteries could accelerate demand for mass-market electric vehicles (EVs), and help automakers sidestep nickel and cobalt supply problems that have been driving up EV prices. The big picture: Carmakers' plans to shift away from gasoline-powered vehicles won't succeed unless they can secure reliable battery supplies. But with raw materials in short supply — and sourced primarily in Asia — the battery race is turning into a fierce geopolitical competition. Driving the news: Ford said Thursday it had lined up enough batteries to meet its short-term goal of producing 600,000 EVs annually by 2023, up dramatically from the 27,140 battery-powered cars it sold in the U.S. last year. The company, which is spending $50 billion to expand its EV lineup, also said it was 70% to its goal of securing enough batteries to produce 2 million EVs annually by 2026. Ford announced a slew of related supplier deals and partnerships — including contracts to buy raw materials directly from mining companies, as other automakers have done. Details: One way Ford intends to meet its EV targets: adding a second type of battery chemistry to its lineup called lithium iron phosphate (LFP), alongside its existing nickel cobalt manganese (NCM) chemistry. Ford will initially import LFP battery packs from China's Contemporary Amperex Technology Co., Ltd. (CATL) for its Mustang Mach-E and F-150 Lightning pickup, starting next year. But it also wants to produce LFP batteries in North America, and plans to open a 40-GWh LFP cell factory by 2026. Between the lines: Iron and phosphorous are abundant, which is why LFP cells cost at least 30% less than today's nickel- and cobalt-based batteries, explains Sam Abuelsamid, principal analyst at Guidehouse Insights. Yes, but: LFP batteries pack 30% less energy than similarly-sized nickel-rich batteries, which translates into shorter driving range. This isn't a huge issue in China, because buyers there care more about price and durability than driving range. But Americans, who aspire to take long road trips, want longer-range EVs capable of going 300 miles or more between charges. Instead of installing a larger battery to meet their range expectations, carmakers can squeeze more LFP cells into battery packs by redesigning them, says Abuelsamid. What they're saying: "We know that the battery material cost is where the war will be won in the short term," said Lisa Drake, vice president of EV industrialization for Ford's Model e division. Share this story.     2. Amazon's new electric ride Photo courtesy of Amazon   Amazon began wide-scale deliveries yesterday with its Rivian-designed electric cargo van, a next-generation logistics vehicle years in the making, Alex Fitzpatrick reports. Why it matters: Significantly electrifying Amazon's delivery van fleet could help the company meet its ambitious target of hitting net zero carbon emissions by 2040. Commercial fleets will probably go electric at significant scale before everyday car buyers — meaning companies like Amazon, FedEx and so on are poised to drive the electrification revolution. Driving the news: Amazon introduced the production model of Rivian's van, called the Electric Delivery Vehicle (EDV), at a Chicago press event following a pilot program that began last year. The EDV is also rolling out this week in Baltimore, Dallas, Kansas City, Nashville, Phoenix, San Diego, Seattle and St. Louis, "among other cities" in the U.S., per Amazon. The details: The EDV isn't just yesterday's cargo van with an internal combustion engine swapped for an electric one — it's purpose-built with tech meant to meet the needs of Amazon and its drivers. Onboard software links up with Amazon's logistics systems. Accelerometers throughout the vehicle monitor for bangs and bumps, signaling that it might be time for preventative maintenance before something important breaks. Driver-assist features like collision warnings and automatic braking are meant to improve safety. Read the rest.     3. Why Facebook suddenly looks like TikTok Illustration: Aïda Amer/Axios   Facebook's interface is transforming into a more TikTok-like selection of algorithmically chosen videos — with content from family, friends and groups shunted off into a separate side feed, Axios' Sara Fischer reports. Why it matters: The move shifts Facebook further from a social network and toward an entertainment and shopping platform like TikTok. Details: Facebook's new main feed will include a vertical display of public posts — mostly video — with content driven by what the company's algorithm thinks users want to see. A separate chronological Feeds tab will feature the most recent posts from users' friends, pages and groups. Read the rest.     A message from NYSE Changing employee expectations     It's no secret that employees expect more from their employers than they did a few years ago. The NYSE asked ZipRecruiter (NYSE:ZIP) to speak with our listed community and industry experts about how they are taking a more holistic approach to employee health and wellbeing. Learn more.     4. Renting is (mostly) cheaper than buying Data: Realtor.com; Chart: Axios Visuals Renting is more affordable than buying at the entry-level in three-quarters of the U.S., according to a new Realtor.com analysis, Axios' Emily Peck reports. Why it matters: This is a big shift from January, when renting had the edge in a little over half of the markets. The difference now: higher mortgage rates are making the median payment on a "starter" home more costly than on a comparable rental apartment. The big picture: Whether to rent or to own is a timeless conundrum, filled with intangible caveats. Some people want to put down roots for the long haul. Others don't want to deal with the hassle (or expense) of maintaining a house or a condo. In a housing boom, when home prices are rising, renting is typically a better bet. But in the pandemic era, with more people looking for more space all at once, both options got more expensive. Read the rest.     5. 🐈 One fun thing: The cat game Screenshot courtesy of Annapurna Interactive   Game reviewers love "Stray," a new video game where you play as a cat exploring a seedy cyberpunk city. What they're saying: "With a bittersweet story that oscillates between joy, heartbreak, and even occasionally horror, it makes for one of the best games of the year so far," writes The Verge. "I'm confident in recommending it to anyone who's happy to trade conventional, been-there-done-that gaming adventures for something a little slower, shorter, sweeter, and more feline," says Ars Technica. And here's Axios Gaming's Stephen Totilo: "I'm most charmed by the chance to role-play the recognizable rhythms of cat movement that make jumping through Stray's world feel so different than bounding through one as Super Mario or other familiar gaming heroes." Our thought bubble: It's the new "Untitled Goose Game," a beloved 2019 puzzler that put gamers in the shoes — err, webbed feet — of a mischievous waterfowl.     A message from NYSE Defining wellness for today's workforce     ZipRecruiter (NYSE: ZIP) found that job seekers have increasingly made personal and professional wellness a priority in their job search process, and companies are responding. Thought leaders from across industries expect this trend will be a primary focus of companies moving forward. Learn more.   A hearty thanks to What's Next copy editor Amy Stern. Was this email forwarded to you? Get your daily dose of What's Next magic by signing up here for our free newsletter. Are you a fan of this email format? It's called Smart Brevity®. Over 300 orgs use it — in a tool called Axios HQ — to drive productivity with clearer workplace communications.   Axios thanks our partners for supporting our newsletters. If you're interested in advertising, learn more here. Sponsorship has no influence on editorial content. Axios, 3100 Clarendon B‌lvd, Arlington VA 22201   You received this email because you signed up for newsletters from Axios. Change your preferences or unsubscribe here.   Was this email forwarded to you? Sign up now to get Axios in your inbox.   Follow Axios on social media: