Ford is experiencing the same unstable battery supply problems as Nio, which is the first reason for the Mustang Mach-E's low deliveries in China.

(Image credit: Ford China)

Ford's Mustang Mach-E was once one of the most talked-about electric vehicle models in China, but its post-launch performance has been disappointing. Now, the company is reportedly responding.

The Mustang Mach-E registered just 352 insurance units in China in January, which could be seen as the model's deliveries in the country, WeChat account AI4Auto, which follows the auto industry, said in a report Saturday.

The report said Ford offered two reasons for this, the first of which was that "Ford is experiencing the same problem as Nio with an unstable battery supply."

The Ford Mustang Mach-E is currently powered by ternary lithium batteries from BYD, mainly produced by the latter's plant in Xi'an.

However, due to the Covid-19 outbreak, Xi'an went into lockdown from late last year to January this year, resulting in an inability to properly circulate the battery raw materials and transfer the batteries from the Xi'an plant to Ford's joint venture in China, Changan Ford's plant in Chongqing, according to the report.

As a result, Mustang Mach-E production was also affected and could not be delivered in time, the report said.

The locally produced Mustang Mach-E's battery supplier is only BYD, and for technical tuning and other reasons, the situation of a single battery supplier cannot be changed in the short term, the report quoted Ford as saying.

Ford officially launched the locally produced Mustang Mach-E in China in April 2021, and after months of waiting, the model began to be delivered to the first buyers on December 26 last year.

But unfortunately, four days later, on December 30, Changan Ford announced that some customers' vehicle deliveries would be delayed because of a temporary shutdown at one of the plants of its partner that supplies the batteries for the Mustang Mach-E.

The battery plant is located in the northwestern Chinese city of Xi'an, which was closed due to the Covid-19 outbreak, and six field engineers for Ford's Mustang Mach-E program were quarantined in the city, according to the announcement.

"It is inevitable that Mustang Mach-E production will be affected to some extent and deliveries to some customers will be delayed as a result," the announcement said.

Changan Ford's announcement did not mention the name of its battery supplier, though previous information indicated that the Mustang Mach-E currently uses batteries from BYD.

Ford is not using BYD's signature blade battery based on lithium iron phosphate technology, but rather the latter's 811 ternary lithium battery.

In addition to battery supply, Ford said the second reason is the lack of capacity, according to AI4Auto.

The Ford Mustang Mach-E was launched in China in April last year and only made official deliveries at the end of December, with capacity climbing taking time, the report said.

Ford did not disclose the current production capacity of the Chongqing plant, but said it could ensure timely delivery of existing orders with a stable supply chain, the report noted.

Owners who previously booked the Mustang Mach-E will have to wait 2-3 months to get delivery, and after the supply chain stabilizes, the delivery cycle will be shortened to 6-7 weeks for future owners who book, according to the report.

Ford Mustang Mach-E production in China impacted as Covid lockdown in Xi'an affects battery supply