Ford announced its plan to build a new battery plant called BlueOval Battery Park Michigan, in Marshall, Michigan, with a $3.5 billion investment. The plant is set to begin production in 2026, but Ford aims to reduce wait times for customers by installing the new LFP batteries into the Mustang Mach-E later this year and the F-150 Lightning starting in 2024.
According to the automaker, the LFP battery will become the standard-range offering, which is expected to lower the costs for consumers, improving the affordability and availability of Ford’s electric vehicles. The plant will have an initial production capacity of 35-gigawatt hours, enough to power around 400,000 Ford EVs annually and create 2,500 new jobs.
The LFP batteries use fewer high-demand and high-cost materials, offer exceptional durability, and feature faster DC charging capabilities. Although they provide less energy, power, and cold-weather performance compared to the nickel cobalt manganese (NCM) batteries that Ford currently offers, the automaker’s data analysis revealed that the benefits of LFP batteries outweighed the drawbacks. Ford found that 95% of Mach-E owners start trips with ambient temperatures above freezing, and the median daily distance traveled by the Mach-E is 32 miles.
Ford is the first automaker to commit to building both NCM and LFP batteries in the United States. The automaker reached a new agreement with Contemporary Amperex Technology Co., Limited (CATL) to use its LFP battery technology and services provided by the company, with the automaker manufacturing the battery cells through its wholly-owned subsidiary.
Ford is the first automaker to commit to building both NCM and LFP batteries in the United States. The automaker reached a new agreement with Contemporary Amperex Technology Co., Limited (CATL) to use its LFP battery technology and services provided by the company, with the automaker manufacturing the battery cells through its wholly-owned subsidiary.
Since 2019, Ford has announced $17.6 billion in EV and battery production investments in the US. The automaker aims to reach an annual run rate of 600,000 EVs globally by the end of 2023 and 2 million by the end of 2026. Ford believes that localizing and diversifying the supply chain in countries where it produces EVs will improve their affordability and availability.
“To get as many Ford EVs to customers as possible, we’re the first automaker to commit to build both NCM and LFP batteries in the United States,” said Ford President and CEO Jim Farley.
Source: Ford
