Ford to accelerate EV program with $3.5B battery plant

Ford takes a big chunk of change from its $50-billion electric vehicle (EV) revolution budget and invests $3.5-billion in a wholly owned subsidiary called BlueOval Battery Park Michigan to produce a new battery that uses lithium iron phosphate (LFP) chemistry.

This development makes Ford the first automaker to make a firm commitment to both nickel cobalt manganese (NCM) and LFP as propulsion options powering its next-generation EV passenger vehicles and pickup trucks, including the Mustang Mach-E.

BlueOval Battery Park Michigan is in Marshall, Michigan. Its creation will help Ford diversify and localize its battery supply chain, not just in the USA but also in countries where it builds EVs and offer the public more EV choices. Battery production will commence by 2026 and will employ 2,500 people.

“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. I am also proud that we chose our home state of Michigan for this critical battery production hub,” said Bill Ford, Ford executive chair.

Batteries using LFP chemistry are very durable and tolerate more frequent and faster charging while using fewer high-demand, high-cost materials, which allows Ford to reduce the EV prices for customers.

“Ford’s electric vehicle lineup has generated huge demand. 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. We’re delivering on our commitments as we scale LFP and NCM batteries and thousands, and soon millions, of customers will begin to reap the benefits of Ford EVs with cutting-edge, durable battery technologies that are growing more affordable over time,” said Jim Farley, Ford president, and CEO.

The Mustang Mach-E and the F-150 Lightning will start to use LFP batteries by 2024.