Ford Mulls Making Battery Cells as EV Sales Advance

Ford CEO Jim Farley said the automaker is considering making its own battery cells, which would reverse its plan earlier this year.
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Shares of Ford  (F) - Get Report are rising after Chief Executive Jim Farley said the automaker was considering making its own battery cells, a reversal from the company's stance earlier this year. 

Farely, speaking at the Reuters Automotive Summit teleconference Friday, said the Dearborn, Mich., company was discussing cell manufacturing as electric-vehicle sales volume grows, according to Reuters. 

Tesla  (TSLA) - Get Report and General Motors  (GM) - Get Report have already invested billions into building their own electric fuel cells as a supplement to production from other suppliers. 

Ford shares were rising 3.5% to $8.50 a share. 

Ford on Thursday unveiled its first all-electric transit van as the automaker geared up to be carbon-emissions-free by 2050.

"The transition of fleet vehicles to zero emissions, especially for the fast-growing last-mile delivery segment, is critical to achieve our carbon-neutrality goal by 2050,” Farley said in a statement.

The Ford E-Transit delivers an estimated driving range of 126 miles.

It's part of the company's investment of more than $11.5 billion toward electrification through 2022. 

In September, Tesla held a "Battery Day" event where the company showed off a larger car battery cell, called the 4680, that will generate six times more power, five times more energy and 16% more driving range, all at about 14% lower cost. 

Tesla plans to produce the new battery cells initially at a pilot site in its main Fremont, Calif., factory, with planned output reaching 10 gigawatt hours by the end of 2021.