Ford investing $3.5 bn on a 35 GWh LFP battery plant in Michigan
Adding LFP batteries to its EV lineup this year, American automaker Ford Motor is backing a U.S. LFP battery plant, to aid its scaling-up activities and make EVs more accessible and affordable.
With an investment of $3.5 billion, the company claims to build the country's first automaker-backed LFP battery facility with 35 GWh of LFP battery manufacturing capacity, to be located as a separate unit at the BlueOval Battery Park Michigan, where Ford and SK On are already building NCM battery production architecture.
"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," said Bill Ford, Ford executive chair. "I am also proud that we chose our home state of Michigan for this critical battery production hub."
As the company rapidly scales EV production, introducing LFP batteries allows Ford to produce more electric vehicles and offer more choices to new EV customers, and helps support the company's goal of an 8 percent EBIT margin for Model e by 2026.
Ford claims that LFP batteries are exceptionally durable using fewer high-demand, high-cost materials, and will help power a variety of the brand's next-generation of EV passenger vehicles and pickups. Ford 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.
LFP battery technology also helps reduce reliance on critical minerals such as nickel and cobalt and is in line with Ford's work to create an EV supply chain that upholds its commitments to sustainability and human rights, according to the automaker.
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, as part of the company's commitment to invest over $50 billion in electric vehicles globally through 2026.