Can Ford really compete with Chinaβs electric vehicles? The American automaker believes it may hold the key to competing with Chinese EV makers. Ford shared a few more details about its upcoming low-cost EV platform and how it plans to keep pace with China.
Ford says its new low-cost EV platform will match China
Remember the βskunkworksβ team that Fordβs CEO Jim Farley revealed was working on a new EV platform last year?
Well, itβs not so small, and the secret is out. Led by former Tesla engineer Alan Clarke, the team has grown to around 500 members, many of whom were previously employed at Tesla, Rivian, Lucid, and Apple.
Farley said on the companyβs earnings call early last year that the βultimate competition is going to be affordable Tesla and the Chinese OEMs.β In October 2024, Fordβs CEO said the team is benchmarking costs βagainst the best competitors in the world,β including those in China.
According to Farley, the first vehicle based on the new platform βa midsize electric pickup βwill βmatch the cost structure of Chinese OEMs building in Mexico.β

During a βcandid dinner discussionβ last week, Daniel Roeska, Bernsteinβs lead automotive analyst, spoke with Lisa Drake, Fordβs vice president of tech platform programs and EV systems, about the new platform.
Roeska wrote in a note to investors (via Axios) that βLisa Drake was explicit: Ford intends to match the cost structure of leading Chinese players.β The note added, βThat means not just battery pricing, but full system cost from chassis and thermal systems to inverters and electronics.β

To cut costs, Ford will use prismatic LFP batteries licensed from Chinaβs leading EV battery maker, CATL. They will be manufactured at a new plant in Michigan.
Drake explained that Fordβs new low-cost EV platform will support eight body styles, including trucks, crossover SUVs, and maybe even sedans. The midsize EV pickup, Fordβs first low-cost model, is expected to look like an electric Ranger.

Roeska explained, βWith eight body styles and potential global applicability, itβs intended to underpin Fordβs EV strategy for much of the next decade.β
Ford still has a few hurdles. The new LFP battery plant in Michigan costs about $3 billion, and Ford expects to receive roughly $700 million in federal tax credits to help offset some of the costs. With Republicans aiming to eliminate government subsidies and other incentives for EVs, batteries, and other clean energy projects, it could face an uphill battle.
Electrekβs Take
Can Ford rival China with its new low-cost EV platform? It doesnβt help that the Trump administration is working against it.
After flying Xiaomiβs SU7 from Shanghai to Chicago last year, Farley called the Chinese EV βfantasticβ on the Fully Charged Podcast and even said he βdoesnβt want to give it up.β Xiaomi has already delivered over 200,000 SU7 models, which was launched just last March.
Farley explained that βYouβve got to get behind the wheel to truly understand and beat the competition.β Ford will have some ground to make up with Chinese EV makers, like BYD, which are quickly expanding into new overseas markets.