Ford's New $3.5 Billion Battery Factory Will Help Lower EV Prices

Ford has announced it is partnering with China's Contemporary Amperex Technology Limited (CATL) to build a new $3.5 billion battery plant in Marshall, Michigan, that will produce lithium-iron-phosphate (LFP) batteries for future electric vehicles. These LFP battery packs will become standard on the base Select trim of the Mustang Mach-E later this year and the XLT F-150 Lightning next year.

The new facility, called BlueOval Battery Park Michigan, won't begin production until 2026, and the automaker will utilize technology licensed from CATL. Until that happens, Ford will buy these batteries directly from CATL.

This will be Ford's second battery type. It currently uses nickel cobalt manganese (NCM) batteries, but the new technology will allow for two things: faster EV production rates and lower prices.

Ford did not provide updated pricing information. LFP batteries require less high-demand, high-cost materials. The multi-billion dollar investment will directly lead to the creation of 2,500 new jobs, and Ford says it has the option further grow the plant's battery capacity. The facility itself will be 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," said Bill Ford, Ford executive chair. "I am also proud that we chose our home state of Michigan for this critical battery production hub."

This is the same battery plant Ford and CATL were looking to build in the state of Virginia, but its governor rejected the plan due to concerns over Chinese government influence.