Ford Motor Co. is getting into the battery-making game with plans to develop its own lithium-ion batteries for electric cars, the latest auto maker to bring the critical technology in-house as the industry rushes to sell more plug-in cars.
Ford said Tuesday it plans to open a $185 million battery-development center in southeast Michigan next year. The Dearborn, Mich.-based auto maker eventually plans to manufacture its own battery cells, product chief Hau Thai-Tang said during a media call Tuesday.
Major auto makers are diverting much of their capital spending into electric vehicles, prodded by tougher emissions regulations globally and the emergence of electric-vehicle leader Tesla Inc. and a slate of startups.
Some legacy car companies are following Tesla’s lead by making electric-vehicle components in-house rather than relying on outside suppliers. Batteries are by far the most expensive component of plug-in cars, accounting for a quarter or more of the vehicle’s total cost, and factories to make battery cells require huge outlays of capital.
Analysts have said Ford is behind rivals in making the pivot to electric vehicles when investors are betting big on companies that make them. Since he took over the company last fall, Ford Chief Executive Jim Farley has signaled a more aggressive approach to plug-in cars, including a move into batteries.
