Ford announced that it is spending $3.5 billion to construct a factory in Michigan that will create inexpensive batteries for some of its electric vehicles.
As it ramps up towards the commencement of production in 2026, the factory, which will be situated on a greenfield location in the city of Marshall, will initially produce 2,500 jobs.
It will develop nickel cobalt manganese (NCM) and lithium iron phosphate (LFP) cells, which have a lower energy density than the nickel cobalt chemistry currently used in all of Ford’s electric vehicles but are less expensive to make.
Although a Ford affiliate will own the entire project, Contemporary Amperex Technologies Co., Limited, a Chinese battery business, will provide technology under licence (CATL).
Gretchen Whitmer, the Michigan Governor said, “Today’s generational investment by an American icon will uplift local families, small businesses, and the entire community and help our state continue leading the future of mobility and electrification.”
Prior to moving to domestically produced packs, Ford will start using imported LFP packs supplied by CATL in some variants of the Mustang Mach-E SUV later this year and the F-150 Lightning the following year.
“Let’s continue bringing the supply chain of electric vehicles, chips, and batteries home while creating thousands of good-paying jobs and revitalizing every region of our state,” Gretchen Whitmer added further.
According to Marin Gjaja, chief customer officer for Ford Model e, LFP cells will take the role of NCM technology in entry-level Standard Range cars while NCM will still be used in longer-range and greater power applications.
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