ford's push into electric vehicles is timely - lithium battery price

Ford Motor Company (NYSE: F)
It was recently announced that it would not invest $1.
6 billion expansion of production facilities in Mexico.
Instead, it will expand its production capacity in Pingshi, Michigan.
An important project of this announcement is that the company will expand the production of electric vehicles. The U. S.
The US-based automaker has announced that it will produce F-
150 truck and roadster Mustang, one plug
Transit customized hybrid versions of commercial vans and two new hybrid police cars.
This is an important news because electric vehicles are closer to commercial viability than ever before.
With the release of the new 238-mile series Chevrolet Bolt and the launch of the Tesla Model 3 in 2017, electric vehicles may eventually shift from marginal figures on the horizon to mass-market products.
Electric vehicles are not just a social and environmental problem, properly.
With the price of lithium-ion batteries falling, this is more effective than ever.
Cars become the biggest consumer of lithium.
In 2015, the price of ion batteries fell every year.
Tesla's Giga plant in Nevada plans to double lithium-ion battery production in a few years, which will further reduce the price of lithium-ion batteries.
In addition, research on improving battery efficiency and energy density will enable automakers to produce electric vehicles at a price competitive with internal combustion engine-powered vehicles in the near future.
This means that consumers can consider buying even if electric cars are slightly more expensive than ICE.
Car purchases include advances paid to car sellers, followed by ongoing fees paid during the ownership of the car.
These include fuel costs, maintenance costs, service fees and other ancillary costs.
In addition, car buyers often consider the depreciation rate of the vehicle when purchasing the vehicle.
Since the electric car is only about 10-
Compared with thousands of ice trucks, they are much slower to depreciate.
They can be refueled cheaply, much less than the maintenance needed for the Ice Cube counter parts.
This means that savings in cost of ownership can be easily transferred to the purchase price.
Battery price down-
At present, the price of batteries accounts for about the third in the manufacturing cost of electric vehicles.
The purchase price is also falling at the same time.
This has made Ford's push on electric vehicles more timely.
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: Global hat | United StatesS.