Ford taps Michigan for new $3.5 billion battery plant
The US automaker says that it is investing USD 3.5 billion to build an electric vehicle battery plant in Michigan, creating 2,500 new jobs in the region.
The plant – called BlueOval Battery Park Michigan – will initially employ 2,500 people when production of LFP batteries starts in 2026. Ford says in its announcement that it will have the option to further grow the battery capacity at its Marshall, Michigan plant – which will be part of a wholly owned Ford subsidiary.
“We are committed to leading the electric vehicle revolution in America, and that means investing in the technology and jobs that will keep us on the cutting edge of this global transformation in our industry,” says Bill Ford, Ford executive chair, in the press release.
The new battery production facility in Michigan will add approximately 35 GWh per year of new battery capacity for Ford in the US initially.
LFP batteries tolerate more frequent and faster charging while using fewer high-demand, high-cost materials. Which is part of the company's strategy. Ford is betting that lower costs and faster charging will attract customers – as this lower-cost battery, at scale, will help Ford contain or even reduce EV prices for customers.
Even before the new battery plant opens, Ford says it will introduce LFP batteries on Mustang Mach-E this year and F-150 Lightning in 2024.
Ford will license technology from Contemporary Amperex Technology Co., Limited (CATL), to produce the LFP batteries in Michigan. The US automaker has previously entered into partnerships with other major battery companies, such as SK Innovation, with whom its building EV battery factories in Tennessee and Kentucky, and LG Energy Solutions.