Ford invests $3.5B in Michigan LFP battery plant

Ford invests $3.5B in Michigan LFP battery plant

Investing in LFP batteries will help the company reduce its reliance on critical minerals such as nickel and cobalt in EVs.

Ford announced it is investing $3.5 billion to build the country’s first automaker-backed LFP battery plant, offering customers a second battery technology within Ford’s EV lineup.

With this $3.5 billion investment, Ford and its battery tech collaborators have announced $17.6 billion in investments in electric vehicle and battery production in the United States since 2019; Ford says it is planning to invest over $50 billion in electric vehicles globally through 2026. In the next three years, these investments will lead to more than 18,000 direct jobs in Michigan, Kentucky, Tennessee, Ohio and Missouri and more than 100,000 indirect jobs, according to the methodology from a 2020 independent study.

This plant – called BlueOval Battery Park Michigan – initially will employ 2,500 people when production of LFP batteries begins in 2026. Ford will have the option to further grow its battery capacity at its Marshall, Michigan, plant, which will be part of a wholly owned Ford subsidiary.

Diversifying and localizing Ford’s battery supply chain in the countries where it builds EVs will improve availability and affordability for customers while strengthening consumer demand, the company says. Ford adds it is working to deliver an annual run rate of 600,000 electric vehicles globally by the end of this year, and 2 million globally by the end of 2026 as part of its Ford+ plan.

Ford says that offering LFP as a second battery chemistry, in addition to nickel cobalt manganese (NCM), allows its customers to choose an electric vehicle with unique battery performance characteristics most aligned with their needs. LFP batteries are very durable and tolerate more frequent and faster charging while using fewer high-demand, high-cost materials. This lower-cost battery, at scale, will help Ford contain or even further reduce EV prices for customers. These LFP batteries will power a variety of affordable, next-generation Ford EV passenger vehicles and trucks under development, most of which will be assembled in the U.S.

Even before the new battery plant opens, Ford will introduce LFP batteries on the Mustang Mach-E this year and F-150 Lightning in 2024 to increase production capacity, with a goal of reducing wait times for customers.

This all-new battery production facility in Michigan will add approximately 35 gigawatt hours per year of new battery capacity for Ford in the U.S. initially – capable of powering approximately 400,000 future Ford EVs.

As part of Ford’s plan to offer a new battery chemistry and source in key regions where it produces EVs, Ford has reached a new agreement with Chinese battery manufacturer Contemporary Amperex Technology Co., Limited (CATL). Under the arrangement, Ford’s wholly-owned subsidiary would manufacture the battery cells using LFP battery cell knowledge and services provided by CATL, which has operated 13 plants in Europe and Asia.

Ford engineers will integrate these LFP battery cells into its vehicles. This new agreement with CATL adds to Ford’s existing battery capacity and available battery technology made possible through a series of key collaborations – including with SK On and LG Energy Solution (LGES).

You May Also Like

NACFE discusses real-world commercial applications for BEVs

Mike Roeth, executive director of NACFE, advised to keep an open mind with realistic expectations about BEVs.

NACFE-stock

In a recent newsletter, the North American Council for Freight Efficiency (NACFE) asked readers to keep an open mind when it comes to real-world commercial applications for BEVs. Mike Roeth, executive director of NACFE, alluded to Dickens’ A Tale of Two Cities, explaining that having additional vehicle options drives competition and benefits fleets, but widespread adoption of BEV tech is still hindered by major issues, which present learning opportunities.

Volvo Cars reports electric, hybrid vehicle sales increased by 18%

In the US, sales of cars with a fully electric or plug-in hybrid powertrain grew by 6% compared to February 2023.

Volvo-Cars-EV-sales
Motiv Power Systems delivers five electric step vans to Shasta Linen Supply

Shasta said it has already driven 9,600 miles and reduced an estimated 15,800 pounds of tailpipe emissions and saved $4,800 on fuel costs.

Shasta-Linen-Working
Lucid debuts European vehicles at the Geneva Motor International Show

The Californian EV company also revealed expanded service offerings and an updated portfolio of its Air lineup.

Lucid_Air_Pure
JATO Dynamics’ data reveals European BEV market share fell in January

BEVs took just 12% of the total market share for Europe in January this year, marking the lowest levels recorded for new registrations since January 2023.

EV-charging-generic-SAE-consortium-1400

Other Posts

StoreDot tests battery cells to perform in cold conditions

Recent tests revealed that StoreDot’s silicon battery cells reach 80% capacity when charged at -10°C (14°F) with standard charging speed.

StoreDot-extreme-fast-charging-EV-batteries
GM to provide Southern Company with Hydrotec fuel cell-powered trucks

GM is sending its trucks to Southern Company to demonstrate real-life applications of fuel cells for fleet and commercial customers.

gm-hydrotec-prototype-field-evaluation-fleet-truck
Mullen road tests solid-state polymer battery pack

The initial test results met or exceeded all requirements targeted for the first drive cycles for energy usage and driving range.

Mullen-battery-pack-testing
Nitrocross unveils all-electric race class with Sierra Car

In September, the Sierra Car support series race will take place at Nitrocross 24/25 in Richmond, VA.

Nitrocross-SIERRA_Car