Ford Motor Co. (F) and Best Buy Co. Inc. (BBY) will partner to install household charging stations for the new Focus Electric cars being launched in the U.S. later this year, Ford said Friday.

The Detroit auto maker is launching its first pure electric vehicle later this year as competition for zero-emissions cars heats up in the U.S. Nissan Motor Co.'s (NSANY, 7201.TO) Leaf and Chevrolet's Volt were recently launched and about a dozen electric models are expected to hit dealerships in the next three years. This is being supported by billions of dollars of federal tax cuts and subsidized loans and grants to auto makers.

Ford's announcement comes at a time when high gasoline prices, hovering around record levels for the off-peak winter season, are raising concerns about the impact on consumers' wallets given the shaky economic recovery.

But electric cars face a major uphill battle before they gain widespread popularity in the U.S. because they are more expensive than conventional cars, require hours to charge and have a limited driving range based on the battery.

Executive Chairman Bill Ford said that electric-vehicle technology is a "game changer" for the industry and a core part of the company's strategy to improve efficiencies and reduce greenhouse gas emissions blamed for global warming.

"We've committed to becoming a leader in fuel economy in every segment," whether they run on petroleum or battery-supplied electricity, Ford said. He added that the company takes the view that gasoline prices will march higher and there could be increases in demand for hybrids and electric cars during those periods.

Early adopters of the Focus Electric, which will initially be released in 19 cities, will be higher-income drivers who are willing to overlook the technology's limitations in an effort to curb carbon emissions, Nancy Gioia, Ford's global director of electrification, said in an interview.

"We are electrifying our highest volume global platform" for producing vehicles, Gioia said, but she expects the overall rate of adoption to be modest. "There are still a lot of technological enhancements and improvements that need to happen on the battery itself," such as improving durability and performance during hot and cold temperatures, she said.

The partnership with Best Buy will help facilitate the process with these early Focus Electric buyers by evaluating homes, working with electricians on permitting issues and installing the units, Gioia said.

Best Buy will sell the portable 240-volt charging stations at nearly 1,200 stores nationwide or online for $1,499, or 30% less than competing systems. The retailer will also handle warranty and repair claims for the unit. It will take three to four hours to charge the Focus, or about half the time as the Nissan Leaf, according to Ford. By comparison, Nissan estimates the entire cost for installing its charger is $2,200.

Even with consumer tax credits, the additional cost for a charging station on top of the premium consumers typically pay for electric vehicles, versus conventional gasoline cars, and an installation process that can take up to four weeks could deter adoption of the electric cars.

Ford has not released the price of the Focus Electric or said how many it expects to sell, but Gioia said the car will be competitively priced. The Leaf goes for about $33,000 and the Volt is priced at around $41,000.

The Focus Electric will have a "better" mile-per-gallon equivalent than the 60 miles-per-gallon the Environmental Protection Agency rated the Chevrolet Volt and will be competitive with other electric vehicles. The Leaf was rated at 99 MPG equivalent.

Gioia said that Ford's electric car could travel 100 miles in mild temperatures and flat roads. To ease so-called range-anxiety concerns, Ford also unveiled a mobile-phone application that allows drivers remotely begin charging cars that have been plugged in, locate the vehicle and plan trips based on battery life.

The total battery capacity is 23 kilowatt hours and Ford estimates it will cost $2 to $3 to fully charge the vehicle. By comparison, the battery capacity for Volt is 16.5 kWh and for the Leaf it is 24 kWh.

Hybrid and electric vehicles will make up about 10% to 25% of Ford's vehicle fleet by 2020, with hybrids making up about 70% of that share, Gioia said. Today hybrids make up 1% of Ford's fleet. The company sold about 2 million vehicles in the U.S. last year.

Ford shares closed up 5 cents, or 0.3%, at $18.27 Friday. The stock has rebounded 60% over the past 12 months.

-By Naureen S. Malik, Dow Jones Newswires; 212-416-4210; naureen.malik@dowjones.com

--Michael Ramsey in Detroit contributed to this article.
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