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Ford CEO Jim Farley didn't mince his words: Western automakers are at least a decade behind in battery technology. He even said he doesn't want to return the Xiaomi SU7 he's driving. For him, either the US learns from the Chinese and licenses this technology, or it will sit on the sidelines while China dominates the electric car market.
Among all the giants in the industry, Ford has been one of the few to speak openly about China's strength in the automotive industry. Jim Farley has made it clear that Chinese manufacturers have pulled ahead, and the West is playing catch-up.
Ford's CEO has been honest enough to admit that he is driving a Xiaomi SU7 and doesn't want to give it back. That says a lot, right? one of the most influential guys of the automotive industry is impressed with a Chinese car, you can already imagine the level of their advancement.
Why is China so far ahead in batteries, according to Ford CEO?
While the West was hesitant, China stepped on the gas and invested heavily in electric cars. The result? Today, Chinese models are cheaper, have greater autonomy and have much more efficient batteries.
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Now, manufacturers like Ford, GM and Volkswagen are feeling the pressure. Either they catch up and reinvent themselves, or they will end up losing ground to the Chinese, who already dominate global battery production.
The way out? Ask the Chinese for help
Ford's CEO made no secret of his intentions: American automakers need to license Chinese technology if they want to compete. In other words, they need to learn from those who are ahead and only then try to develop something of their own.
Interestingly, 25 years ago it was the opposite. When Western manufacturers entered China, they were forced to share knowledge. Now, the ones who need to learn are the Americans. The world goes around, right?
The US reacts – but will it be enough?
In an attempt to make up for lost time, Ford has announced a LFP (lithium-iron-phosphate) battery factory in Michigan, which will begin operating in 2026. There's just one detail: the technology used will be Chinese, licensed from the giant CATL.
The Biden government is investing to strengthen production battery site, but will there be time? The Chinese are already light years ahead, and making up for that difference won't be easy.
