Ford Collaborates with Volvo and Redwood on EV Battery Recycling

Ford (F) and Geely Automobiles subsidiary Volvo Cars will join Redwood Materials to recycle electric vehicle (EV) batteries in California. According to Reuters, the trio plan to collect end-of-life batteries from electric and hybrid cars and recover materials to use in new batteries. F shares fell 2.61% to close at $17.54 on February 17.

Ford is an automobile company that designs, manufactures, and sells cars, trucks, and automobile parts. Ford’s upcoming earnings report for Q1 2022 is scheduled for April 28, 2022.

The Trio

The latest pact builds on an earlier partnership between Ford and Redwood Materials focused on developing a supply chain for EV batteries. Redwood has already started working with dealers and dismantlers in California as it looks to recover end-of-life battery packs to be used in the recycling process.

General Motor and its battery partner, LG Energy Solution, have also inked a deal with Li-Cycle to recycle battery scrap metal from lithium cells. The push comes on Ford and General Motors acknowledging that battery recycling is one of the best options for developing a domestic supply chain to meet growing EV demand.

Stock Rating

Last week, Morgan Stanley analyst Adam Jonas reiterated a Sell rating on Ford stock and raised the price target to $13 from $12, implying 25.88% downside potential to current levels. According to the analyst, expectations for Ford’s core Internal Combustion Engine business and fast-growing EV business are high. The analyst believes investor expectations need to be better managed as the EV plan becomes a reality.

Consensus among analysts is a Moderate Buy based on 8 Buys, 7 Holds, and 2 Sells. The average Ford price target of $23.63 implies 34.72% upside potential to current levels.

Download the TipRanks mobile app now.

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Read full Disclaimer & Disclosure.

Related News:
Many Worries Weigh on Meta. But the Stock Is a Buy
BMO Enters Financing Agreement with Seaspan
O’Reilly Automotive Could Benefit from Inflation