Ford to Invest US$2 Billion, Turn Louisville Plant into EV Hub

Ford announced a US$2 billion investment to convert its Louisville Assembly Plant in Kentucky into a hub for affordable electric vehicles (EV) production. The facility will manufacture a new midsize, four-door electric pickup starting in 2027, marking the launch of the company’s Universal EV Program.

The Louisville investment is part of Ford’s broader EV strategy, which also includes a US$3 billion commitment to a battery park in Michigan. Combined, the two projects are expected to create or secure nearly 4,000 jobs, according to the automaker. The Louisville plant alone will retain about 2,200 positions after the conversion—approximately 600 fewer than its current workforce. As of April 2024, the facility employed more than 3,000 workers, according to company data.

“This is a radical approach to a very hard challenge: create affordable vehicles that meet customer expectations on design, innovation, flexibility, space, driving pleasure, and cost of ownership—and do it with American workers,” said CEO Jim Farley during the announcement event at the Louisville plant.

The first model under the new program—a US$30,000 electric pickup—is designed to compete in an increasingly cost-driven global EV market dominated by new entrants. “We knew that the Chinese would be a major player globally—companies like BYD, startups from around the world, and big tech firms all have ambitions in the auto space. They’re all coming for us, legacy automakers,” Farley said. “We needed a radical approach and a tough challenge to create an affordable vehicle.”

The truck will use lithium iron phosphate (LFP) batteries assembled in the United States, a strategic move to reduce reliance on Chinese imports and align with shifting US policy. Ford said this localization supports supply chain security amid new regulations under President Donald Trump, including the termination of federal EV tax credits effective Sep. 30.

Executives positioned the US$30,000 price point as a modern equivalent of the Model T, adjusted for inflation. Internally, Ford refers to this milestone as its next “Model T moment,” underscoring its commitment to accessible EV ownership.

The new pickup will feature advanced utility functions. Farley described it as a “mobile power plant,” capable of running tools, appliances, or even serving as a backup energy source for homes. Production at Louisville will also be up to 40% faster than current models thanks to new EV-focused assembly processes.

The Louisville plant, in operation for over 70 years, has historically produced gas-powered vehicles. Its conversion represents a significant shift in Ford’s US manufacturing strategy toward electrification.

Despite workforce reductions at  the site, Farley highlighted Ford’s broader hiring record. “Ford’s the only car company in America that’s added 13,000 jobs since the recession. We are not going to stop,” he told CNBC in a separate interview.

The announcement comes amid uncertainty in the US EV market driven by policy changes. According to Kelley Blue Book, 607,089 EVs were sold in the United States between January and June 2025—a 1.5% year-over-year increase and the strongest first half on record. However, second-quarter sales fell 6.3% from the prior year, with 310,839 units sold, possibly reflecting consumer hesitation ahead of the expiring federal tax credit.

Analysts expect a temporary sales boost in 3Q25 as buyers move to take advantage of the US$7,500 credit before it ends. The impact on 4Q25 and 2026 remains uncertain.