Ford stops letting customers buy EVs at lease end

Ford Motor Co. has stopped allowing prospects in most states to order its electric cars at the conclude of a lease, a coverage it claims will help manage EV battery recycling.

The rule applies to leases that started June 15 or afterwards in 38 states. Ford programs to update lease agreements in the remaining 12 states to reflect the plan by the end of the 12 months.

In a statement, Ford Credit score reported customers who lease an F-150 Lightning, Mustang Mach-E or E-Transit have to return the motor vehicle when the contract is up and can then renew their lease with a new motor vehicle if they select.

“Ford wishes to make electrical motor vehicles additional sustainable, generate down the expense for batteries, and eventually aid make electrical vehicles accessible and very affordable for far more Us residents,” a Ford Credit rating spokeswoman reported in a statement. “Ford’s battery technique incorporates recycling and localizing battery production, and Ford Credit’s system for EV leasing allows clients to switch their automobiles with the most recent model at lease close when holding the vehicle in the Ford community for a longer period so Ford can far better regulate battery recycling and resources.”

CarsDirect 1st claimed the plan improve.

The automaker has taken ways not long ago to bolster its source of batteries, which CEO Jim Farley has explained is crucial to its long term good results. Ford aims to develop 600,000 EVs globally by the finish of 2023 and 2 million by 2026.

“The issue is batteries,” Farley told CNBC late very last yr. “Which is what we have to solve.”

Ford previous year struck a offer with battery recycling enterprise Redwood Components to reduce squander and eventually reuse factors from EVs. The automaker in April signed a preliminary deal to invest in lithium from a Lake Means facility in Argentina.

“Ford is performing definitely really hard suitable now on the ideal discounts to safe all that battery capability and fill it up with raw materials,” Farley stated in February.