Ford Faucets Michigan For New LFP Battery Plant; New Battery Chemistry Provides Prospects Worth, Sturdiness, Quick Charging
Constructing on Ford’s dedication to American manufacturing, Ford introduced in the present day it’s investing $3.5 billion to construct the nation’s first automaker-backed LFP battery plant, providing prospects a second battery know-how inside Ford’s EV lineup.
This plant – referred to as BlueOval Battery Park Michigan – initially will make use of 2,500 individuals when manufacturing of LFP batteries begins in 2026. Ford could have the choice to additional develop its battery capability at its Marshall, Michigan, plant, which will probably be a part of a completely owned Ford subsidiary.
With this $3.5 billion funding, Ford and its battery tech collaborators have introduced $17.6 billion in investments in electrical automobile and battery manufacturing in america since 2019, as a part of the corporate’s dedication to take a position over $50 billion in electrical automobiles globally by 2026. Within the subsequent three years, these investments will result in greater than 18,000 direct jobs in Michigan, Kentucky, Tennessee, Ohio and Missouri and greater than 100,000 oblique jobs, in response to the methodology from a 2020 unbiased research.
“We’re dedicated to main the electrical automobile revolution in America, and which means investing within the know-how and jobs that may preserve us on the chopping fringe of this international transformation in our trade,” stated Invoice Ford, Ford govt chair. “I’m additionally proud that we selected our residence state of Michigan for this essential battery manufacturing hub.”
Diversifying and localizing Ford’s battery provide chain within the nations the place it builds EVs will enhance availability and affordability for patrons whereas strengthening shopper demand. Ford is working to deliver an annual run rate of 600,000 electric vehicles globally by the top of this yr and a pair of million globally by the top of 2026 as a part of its Ford+ plan.
As the corporate quickly scales EV manufacturing, introducing LFP batteries permits Ford to provide extra electrical automobiles and supply extra selections to new EV prospects, and helps help the corporate’s aim of an eight p.c EBIT margin for Mannequin e by 2026.
LFP Battery Chemistry to Profit Ford Prospects
Providing LFP as a second battery chemistry – along with nickel cobalt manganese (NCM) – permits Ford prospects to decide on an electrical automobile with distinctive battery efficiency traits most aligned with their wants.
LFP batteries are very sturdy and tolerate extra frequent and sooner charging whereas utilizing fewer high-demand, high-cost supplies. This lower-cost battery, at scale, will assist Ford comprise and even additional cut back EV costs for patrons. These LFP batteries will energy quite a lot of reasonably priced, next-generation Ford EV passenger automobiles and vans below improvement, most of which will probably be assembled within the U.S.
“Ford’s electrical automobile lineup has generated big demand. To get as many Ford EVs to prospects as doable, we’re the primary automaker to commit to construct each NCM and LFP batteries in america,” stated Jim Farley, Ford president and CEO. “We’re delivering on our commitments as we scale LFP and NCM batteries and 1000’s, and shortly thousands and thousands, of consumers will start to reap the advantages of Ford EVs with cutting-edge, sturdy battery applied sciences which can be rising extra reasonably priced over time.”
Even earlier than the brand new battery plant opens, Ford will introduce LFP batteries on Mustang Mach-E this yr and F-150 Lightning in 2024 to extend manufacturing capability, with a aim of lowering wait occasions for patrons.
Dedication to American Manufacturing
This all-new battery manufacturing facility in Michigan will add roughly 35 gigawatt hours per yr of recent battery capability for Ford within the U.S. initially – able to powering roughly 400,000 future Ford EVs.
“Ford’s $3.5 billion funding creating 2,500 good-paying jobs in Marshall constructing electrical automobile batteries will construct on Michigan’s financial momentum,” stated Michigan Governor Gretchen Whitmer. “Immediately’s generational funding by an American icon will uplift native households, small companies, and your complete group and assist our state proceed main the way forward for mobility and electrification. Let’s proceed bringing the provision chain of electrical automobiles, chips, and batteries residence whereas creating 1000’s of good-paying jobs and revitalizing each area of our state. Since I took workplace, we’ve secured over 30,000 auto jobs and landed a number of electrical automobile and chip-making factories. We’re on the transfer, so let’s preserve our foot on the accelerator.”
As a part of Ford’s plan to supply a brand new battery chemistry and supply in key areas the place it produces EVs, Ford has reached a brand new settlement with Modern Amperex Expertise Co., Restricted (CATL) – the world’s main battery producer. Underneath the association, Ford’s wholly owned subsidiary would manufacture the battery cells utilizing LFP battery cell information and companies offered by CATL, which has operated 13 crops in Europe and Asia.
Ford engineers will combine these LFP battery cells into its automobiles. This new settlement with CATL provides to Ford’s current battery capability and obtainable battery know-how made doable by a sequence of key collaborations – together with with SK On and LG Vitality Resolution (LGES).
Sustainable EV Provide Chain
LFP battery know-how helps cut back reliance on essential minerals similar to nickel and cobalt and is according to Ford’s work to create an EV provide chain that upholds its commitments to sustainability and human rights.
Ford already has dedicated to reaching carbon neutrality globally throughout its automobiles, operations and provide chain by 2050. Ford was among the many first American automakers to align with the worldwide group to restrict the impacts of worldwide warming as a part of the Paris Settlement and joined RouteZero, a world coalition working towards zero-emission automobiles and vans globally by 2040 and in main markets just like the U.S., Europe and China by 2035. Ford additionally was the primary U.S. automaker to launch a human rights report.