Why is Ford Changing the F-150 From All-Electric to EREV?

Ford’s F-150 Lightning uses Extended Range Electric Vehicle (EREV) technology and offers a generator-backed estimated range of more than 700 miles. 

Production of the all-electric F-150 Lightning, which is America’s best-selling electric, ended in 2025. 

The new vehicle brings a manufacturing change for Ford, which is shifting production of the vehicle from 100% electric to EREV, meaning it also uses on a fossil-fuel generator.

What is an EREV?

EREVs are vehicles that typically include a small ICE-powered generator that recharges the internal battery pack. The ICE generator is not connected to the motors. 

They are sometimes categorised as plug-in hybrid electric vehicles (PHEVs). 

Both EREVs and PHEVs can be charged at EV charging stations and their ICE engines can be refuelled at traditional petrol stations.

The previous generation of F-150 Lightning was a battery electric vehicle (BEV), meaning it relied solely on its battery to power the vehicle. It has a range of 300 miles with 123 kWh battery or 320 miles with a 131 kWh battery. 

In rural areas, where pickup trucks are in high demand, less charging stations may have contributed to slower up-take in sales of all-electric vehicles. 

The next-generation F-150 Lightning

Doug Field, Ford's Chief EV, Digital and Design Officer, says: "The F-150 Lightning is a ground breaking product that demonstrates an EV pickup can still be a great F-Series.

"Our next-generation F-150 Lightning EREV will be every bit as revolutionary. It delivers everything Lightning customers love, near instantaneous torque and pure electric driving. 

“But with a high-power generator enabling an estimated range of 700+ miles, it tows like a locomotive. Heavy-duty towing and cross-country travel will be as effortless as the daily commute."

The next generation version of the F-150 also offers exportable electricity that is able to power external applications, such as campsites or a home during a power outage. 

Like its predecessor, the EREV will be assembled at the Rouge Electric Vehicle Centre in Dearborn. 

Production of the current generation F-150 Lightning has concluded there as employees at the Dearborn Truck Plant support for F-150 gas and hybrid truck production.

Changes in Ford’s EV policy

President Donald Trump’s Executive Order 14154, titled “UNLEASHING AMERICAN ENERGY”, declared that it was US policy to eliminate subsidies and other policy measures positioning markets in favour of EVs. 

The New Clean Vehicle Credit, Previously-Owned Clean Vehicle Credit and Qualified Commercial Clean Vehicle Credit measures all expired in September 2025, leading to less incentives for potential drivers to acquire an EV. 

As well as regulatory changes, EVs also face the effect of high-tariffs on critical minerals needed for the production of batteries. Components of EV batteries are made of critical minerals such as lithium, nickel and cobalt, which are costly due to high demand across sectors.

The IEA speculates that a global shift towards higher tariffs, which affect components for EV batteries, could put upward pressure on battery prices, counteracting some of the significant battery price declines that have occurred since 2015.

Ford’s US$19.5bn loss

Ford expects to record US$19.5bn in loss, the majority in the fourth quarter of 2025, with the remainder in 2026 and 2027. This is partly due to its shift in EV policy.

Ford planned to cut selected EVs where the business case has eroded due to lower than expected demand, high costs and regulatory changes in the United States. It also plans to cancel production on a previously planned new electric commercial van for Europe. 

Jim Farley, Ford President and CEO, says: “This is a customer-driven shift to create a stronger, more resilient and more profitable Ford.

“The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids and high-margin opportunities like our new battery energy storage business.”