Ford says it is investing $3.5 billion to build the first automaker-backed lithium ferro-phosphate (LFP) battery plant in the U.S.
The facility, called BlueOval Battery Park Michigan, will initially 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, Mich., plant, which will be part of a wholly owned Ford subsidiary.
“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,” says 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. In addition to LFP batteries being less expensive to produce than nickel cobalt manganese (NCM) batteries, bringing this new LFP plant to America reduces traditional shipping and import costs, the company says.
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.
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 Contemporary Amperex Technology Co. Ltd. (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.
Ford says it plans to introduce LFP batteries on Mustang Mach-E this year and F-150 Lightning in 2024 to increase production capacity, with a goal of reducing wait times for customers.