Ford is challenging the laws of physics to create budget-friendly electric vehicles.

Ford’s journey into the electric vehicle (EV) market has been anything but smooth. The company recently decided to halt production of the F-150 Lightning, a truck that was once touted as a game-changer in the EV space, after incurring a staggering $19.5 billion loss on its EV investments in 2025. Now, Ford is shifting its focus toward hybrids, extended-range EVs, and traditional internal combustion engine vehicles, which continue to generate significant revenue. It seems that the old ways are making a comeback.

Despite these setbacks, Ford remains committed to the future of EVs, but with a new strategy that avoids oversized models like the Lightning, which Andrew Frick, president of Ford Model e and Ford Blue, described as having “no path to profitability.” Instead, the automaker is channeling its efforts into creating more affordable EVs with unique designs and smaller batteries, aiming to spark customer interest while ensuring profitability. And of course, these vehicles need to be a blast to drive.

Leading this ambitious initiative is Ford’s Silicon Valley-based innovation lab, headed by Alan Clarke, the executive director for EV programs and a former Tesla veteran. While much of their work has been kept under wraps, Clarke recently shared insights into Ford’s Universal EV Platform (UEV), which is set to support a range of low-cost EVs, starting with a $30,000 midsize truck slated for 2027.

The team, consisting of around 500 engineers across Silicon Valley and Los Angeles, is driven by two core principles: efficiency and affordability. Achieving efficiency—by reducing weight, minimizing friction, and improving aerodynamics—is crucial for enhancing affordability. Clarke noted that the skunkworks team is transitioning from the design phase to the critical stage of integrating their innovations into Ford’s manufacturing processes, aiming to leverage the company’s vast scale. This means they are moving beyond the experimental phase and into the heavy lifting of securing supply chains and gearing up for mass production.

Clarke emphasized that this project, while smaller than typical programs, represents the most significant product and platform shift Ford has undertaken in over a decade.

The primary challenge in reducing EV costs, according to Clarke, lies in the battery, which accounts for about 40% of a vehicle’s total cost. Instead of waiting for groundbreaking innovations like solid-state batteries, Ford’s team is focusing on maximizing range from smaller battery packs. To guide their engineers, they introduced a system called “bounties,” which assigns numerical values to key efficiency factors such as vehicle weight and aerodynamic drag—elements that directly influence range and cost.

For instance, a mere one-millimeter adjustment in roof height can save $1.30 in battery costs. Similarly, a slight increase in material costs could lead to reduced brake drag, enhancing efficiency and range. This bounty system helps engineers understand how their daily decisions impact the final product and customer experience.

In the realm of low-cost vehicles, it might seem counterintuitive to opt for pricier components that are lighter. However, by quantifying the savings from reduced battery costs due to weight reduction, Ford’s engineers can justify these choices as beneficial for the overall vehicle cost.

Ford’s quest for affordable EVs also involves tackling the laws of physics. Every bit of drag diminishes range, and at higher speeds, the impact of drag increases significantly. Clarke explained that doubling speed quadruples drag, requiring eight times more power to maintain that speed. To combat this, Ford’s engineers collaborated with experts from Formula One to enhance the UEV’s underbody, optimizing airflow and reducing drag. Their efforts are projected to add 4.5 miles of range.

The design of side mirrors was also reimagined. By combining the functions of mirror adjustment and folding into a single actuator, Ford created a mirror that is over 20% smaller, cutting down on mass, cost, and drag—resulting in an estimated additional 1.5 miles of range.

Weight reduction is another critical factor. Ford is utilizing large aluminum unicastings for the first time, which are expected to provide over a 27% weight reduction compared to competitors. For context, the Ford Maverick uses 146 structural parts in its front and rear, while the new midsize electric pickup will only require two.

To further reduce battery costs, Ford is adopting more affordable lithium iron phosphate (LFP) batteries, which avoid the expensive cobalt and nickel. By using prismatic cells, Ford has developed an efficient cell-to-structure architecture that integrates the battery pack into the truck’s structure. This approach, pioneered by Tesla, is now being embraced by Ford, BMW, and Volvo for its efficiency and weight benefits.

The UEV Platform will also feature Ford’s first zonal wiring system, which simplifies the electronic architecture by reducing the number of electronic control units (ECUs) and wiring, ultimately lowering production costs. While some may view this as following in the footsteps of other automakers, Clarke argues that Ford’s approach is unique, moving logic closer to where functions occur in the vehicle, allowing for more dynamic resource allocation.

Ford is also consolidating power electronics, combining the DC-to-DC converter and AC charger into a single module known as the E-Box. This compact unit manages power distribution and battery management, and can even provide AC power to a home during outages.

There are trade-offs, of course. Ford’s 400-volt architecture may not charge as quickly as the 800-volt systems used by some competitors, but extensive internal studies led the team to conclude that the benefits of 800 volts do not justify the complexity for this vehicle segment. Additionally, the 400-volt system allows for flexibility in supporting various battery chemistries in the future.

As Ford navigates the challenges of the EV market, including political factors that are slowing sales growth, Clarke maintains that the company’s success has never relied on incentives like tax credits, which they view as a bonus rather than a necessity.

As a long-established company with a vast supplier network, Ford has historically lagged behind more vertically integrated firms like Tesla in developing software-driven EVs. However, the UEV project is a step toward bringing more systems and components under Ford’s control, reducing reliance on third-party companies for future feature enhancements.

In a recent video presentation, Ford showcased some design concepts for its upcoming truck. Unlike many current trucks, this new electric pickup will feature a more aerodynamic design with an angled hood and teardrop-shaped roofline, moving away from the traditional boxy look. Clarke noted that if the aerodynamicists worked in isolation, the result might be impractical, so collaboration with other designers ensures that each decision is informed by shared insights.

“You can be the judge when you finally get to see the truck,” he said. “We know we want people to desire it immediately. They have to want to buy it. They have to like the way that it looks.”