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Ford (F) Invests in Indonesia Plant to Secure Nickel for EV
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Ford Motor Company (F - Free Report) is investing in a battery-nickel plant in Indonesia to strengthen its supply chain. It is collaborating with PT Vale Indonesia and Zhejiang Huayou Cobalt Co. in a project to produce 120,000 tons of nickel chemicals per year for electric vehicle (“EV”) batteries, per Bloomberg.
The nickel plant called Pomalaa, which is currently under construction, is likely to commence commercial production in 2026. Although the share of investment of each company in the project is unknown, the total investment is estimated to be around $4.5 billion.
In light of the rising demand for EVs, automakers are striving to secure raw materials like lithium, cobalt and nickel for EV batteries. Ford’s arch-rivals have also shown interest in similar investments. In January, General Motors invested $650 million in a lithium mine in the United States. Also, Tesla is planning on buying a lithium producer.
Amid growing refinery investment in Indonesia, the country has become a significant producer of battery-compatible nickel.
Per Lisa Drake, vice president of Ford's EV Programs and Energy Supply Chain, the direct investment in plants allows Ford to source nickel in cost-efficient ways. It also allows the automaker to keep the amount of nickel mined in line with the company’s sustainability target.
Ford aims to produce more than 2 million EVs by 2026-end. By 2030, it expects EVs to account for 50% of its global sales, which will cement its position in the red-hot EV landscape.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 65.6%, respectively. The EPS estimates for 2023 and 2024 have increased by 2 cents each in the past 30 days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimates for 2023 and 2024 have increased by 15 cents and 2 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimates for 2023 and 2024 have increased by 62 cents and 57 cents, respectively, in the past 60 days.
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Ford (F) Invests in Indonesia Plant to Secure Nickel for EV
Ford Motor Company (F - Free Report) is investing in a battery-nickel plant in Indonesia to strengthen its supply chain. It is collaborating with PT Vale Indonesia and Zhejiang Huayou Cobalt Co. in a project to produce 120,000 tons of nickel chemicals per year for electric vehicle (“EV”) batteries, per Bloomberg.
The nickel plant called Pomalaa, which is currently under construction, is likely to commence commercial production in 2026. Although the share of investment of each company in the project is unknown, the total investment is estimated to be around $4.5 billion.
In light of the rising demand for EVs, automakers are striving to secure raw materials like lithium, cobalt and nickel for EV batteries. Ford’s arch-rivals have also shown interest in similar investments. In January, General Motors invested $650 million in a lithium mine in the United States. Also, Tesla is planning on buying a lithium producer.
Amid growing refinery investment in Indonesia, the country has become a significant producer of battery-compatible nickel.
Per Lisa Drake, vice president of Ford's EV Programs and Energy Supply Chain, the direct investment in plants allows Ford to source nickel in cost-efficient ways. It also allows the automaker to keep the amount of nickel mined in line with the company’s sustainability target.
Ford aims to produce more than 2 million EVs by 2026-end. By 2030, it expects EVs to account for 50% of its global sales, which will cement its position in the red-hot EV landscape.
Zacks Rank & Key Picks
F currently carries Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Volvo (VLVLY - Free Report) , Renault SA (RNLSY - Free Report) and BYD Company Limited (BYDDY - Free Report) , each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 65.6%, respectively. The EPS estimates for 2023 and 2024 have increased by 2 cents each in the past 30 days.
The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimates for 2023 and 2024 have increased by 15 cents and 2 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimates for 2023 and 2024 have increased by 62 cents and 57 cents, respectively, in the past 60 days.