Ford announces new LFP battery plant in Michigan.

Ford has announced that it is investing $3.5 billion to build a new LFP battery plant in Marshall, Michigan. This investment will allow Ford to offer customers a second battery technology within its EV lineup.

In 2026, Ford will start the production of LFP batteries at its new plant named BlueOval Battery Park, Michigan. This plant will employ 2,500 people initially.

The new LFP battery production facility in Michigan will provide Ford with around 35-gigawatt hours of battery capacity per year, initially within the United States. This increase in capacity will be capable of powering around 400,000 future Ford EVs.

This investment of $3.5 billion is part of the $50 billion that Ford has committed to invest globally by 2026 for EVs. So far, Ford and its battery tech collaborators have announced $17.6 billion in investments in electric vehicle and battery production in the United States. These investments will lead to more than 18,000 direct jobs in Michigan, Kentucky, Tennessee, Ohio, and Missouri in the next three years.

LFP batteries, or lithium-iron-phosphate batteries, are a type of rechargeable battery that has been gaining popularity in the automotive industry due to their lower cost and higher safety compared to other types of batteries. LFP batteries are also 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.

By using LFP batteries, Ford can expand its electric vehicle production and provide greater options for new EV consumers, which aligns with the company’s objective of achieving an 8% EBIT margin for Model e by 2026. The introduction of LFP batteries also contributes to improved availability, affordability, and consumer demand. As part of its Ford+ plan, the company aims to achieve an annual run rate of 600,000 electric vehicles globally by the end of 2021 and 2 million electric vehicles globally by the end of 2026.

The company will introduce LFP batteries on the Mustang Mach-E later this year and on the F-150 Lightning in 2024, even before the launch of the new battery plant. This move is aimed at reducing wait times for customers.

To manufacture the new LFP cells, Ford has partnered with CATL. Under this partnership, Ford’s wholly-owned subsidiary would manufacture the battery cells using LFP battery cell knowledge and services provided by CATL. With this agreement, Ford is expanding its existing battery capacity and range of battery technology, which have been made possible through several crucial collaborations with other industry players such as SK On and LG Energy Solution (LGES).

Commenting on this announcement, Jim Farley, Ford president and CEO, said: Ford’s electric vehicle lineup has generated huge demand. To get as many EVs to customers as possible, we’re the first automaker to commit to build both NCM and LFP batteries in the United States. We’re delivering on our commitments as we scale LFP and NCM batteries, and thousands, and soon millions, of customers will begin to reap the benefits of Ford EVs with cutting-edge, durable battery technologies that are growing more affordable over time.

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