Ford Motor Co. has stopped permitting prospects in most states to buy its electrical automobiles on the finish of a lease, a coverage it says will assist handle EV battery recycling.
The rule applies to leases that started June 15 or later in 38 states. Ford plans to replace lease agreements within the remaining 12 states to replicate the coverage by the tip of the yr.
In an announcement, Ford Credit stated prospects who lease an F-150 Lightning, Mustang Mach-E or E-Transit should return the car when the contract is up and may then renew their lease with a brand new car in the event that they select.
“Ford wants to make electric vehicles more sustainable, drive down the cost for batteries, and ultimately help make electric vehicles accessible and affordable for more Americans,” a Ford Credit spokeswoman stated in an announcement. “Ford’s battery strategy includes recycling and localizing battery production, and Ford Credit’s plan for EV leasing enables customers to replace their vehicles with the newest model at lease end while keeping the vehicle in the Ford network longer so Ford can better manage battery recycling and materials.”
CarsDirect first reported the coverage change.
The automaker has taken steps just lately to bolster its provide of batteries, which CEO Jim Farley has stated is vital to its future success. Ford goals to construct 600,000 EVs globally by the tip of 2023 and a pair of million by 2026.
“The issue is batteries,” Farley advised CNBC late final yr. “That’s what we have to solve.”
Ford final yr struck a cope with battery recycling firm Redwood Materials to get rid of waste and ultimately reuse parts from EVs. The automaker in April signed a preliminary deal to purchase lithium from a Lake Resources facility in Argentina.
“Ford is working really hard right now on the right deals to secure all that battery capacity and fill it up with raw material,” Farley stated in February.