Ford is going to produce batteries for electric vehicles itself

American automaker FordMotorCo is going to launch its own production of lithium-ion batteries for electric vehicles. The company intends to open a $ 185 million battery development center in southeastern Michigan next year, Finmarket reported. According to chief engineer Hau Tai-Tang, Ford plans to produce batteries for electric vehicles itself.

Batteries are the most expensive component of electric vehicles, accounting for at least a quarter of the total cost, and battery businesses require huge investments, TheWallStreetJournal notes. Ford is purchasing currently batteries from third party suppliers. For example, the electric version of the popular F-150 pickup truck, which will go on sale the next year, will use batteries from Korea's SK InnovationCo.