Ford Invests US$3.5 billion in New Battery Plant

Ford Motors has announced a US$3.5 billion investment in the first automaker-backed new lithium iron phosphate (LFP) battery plant in the US. The new facility, called BlueOval Battery Park Michigan, will initially employ 2,500 people and begin production in 2026. 

The facility will power around 400,000 future Ford EVs thanks to its 35 gigawatt hour per year capacity, reads the company’s press release. This investment is part of the automakers commitment to boost its electromobility capacities. The company plans to invest over US$50 billion in EV production and technology by 2026. Ford has invested US$17.6 billion in EV and battery production in the US since 2019.

The new plant is expected to create over 18,000 direct jobs in Michigan and several other US states in the next three years, as well as over 100,000 indirect jobs. Jim Farley, President and CEO, Ford, highlights the work the company is doing to meet the increasing demand for EVs.  “Ford’s electric vehicle lineup has generated huge demand. To get as many Ford EVs to customers as possible, we are the first automaker to commit to build both NCM and LFP batteries in the US,” says Farley.

Ford will begin incorporating LFP batteries in its vehicles this year with the Mustang Mach-E and the F-150 Lightning in 2024, with a goal of reducing wait times for customers. The new battery plant will also help support the company's target of an 8% EBIT margin for Model e by 2026.

The automaker is committed to become the forerunner in the industry’s road towards decarbonization.  “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, Executive Chairman, Ford.

Last year, the US automaker said it aimed to triple its EVs production goal for Mexico. Ford announced that production at its assembly plant in Cuautitlan, State of Mexico, will go from 70,000 to 210,000 units. The automaker is focusing its EV production in Mexico on the Mustang Mach-E, with the goal of supplying North America, the EU and China.

Despite the growth in EV production, the electric vehicle market remains relatively small. However, Ford's investment signals the company's commitment to expanding its EV offerings and meeting growing demand for more sustainable transportation options.