Ford Takes Big Step To Challenge Tesla's EV Dominance

Industry News / 7 Comments

BlueOval City is officially underway.

In light of the Inflation Reduction Act, we're seeing weekly announcements of new EV manufacturing facilities in the US from carmaker trying to regain access to federal tax credits. This is bound to continue for a while as automakers weigh up the benefits of local plants for EVs or try and convince the government to open a few loopholes - as South Korea is trying to do on behalf of Hyundai and Kia.

One automaker that doesn't have an issue, however, is Ford. The Blue Oval is already well on its way to an electric future and is already America's second-best-selling EV manufacturer behind Tesla. In a bid to change that title and become America's number one EV brand, Ford has broken ground at BlueOval City - a massive new facility coming to West Tennessee that will bolster the brand's assault on the EV segment.

Ford
Ford

The $5.6 billion investment was first announced last year in partnership with South Korean battery manufacturer SK On and will become the home of Ford's advanced battery development and production for Ford and Lincoln vehicles. Perhaps more importantly, the home of an all-new electric truck - believed to be the next generation of the Ford F-150 Lightning.

"We are building the future right here in West Tennessee," said Eric Grubb, Ford's director of new footprint construction, speaking of the nearly six-square-mile campus. "This facility is the blueprint for Ford's future manufacturing facilities and will enable Ford to help lead America's shift to electric vehicles."

Ford
Ford
Ford

The facility will create around 6,000 jobs by 2025 when production gets underway and is an integral part of Ford's ambitions to produce two million EVs a year globally by late 2026.

"Ford's historic investment in West Tennessee is a testament to our state's strong business climate and unmatched workforce," said Governor Bill Lee. "BlueOval City will have a transformational impact on Tennesseans and our economy, and we're proud this global company will call Haywood County home."

As part of Ford's commitment to The Volunteer State, it is working with the University of Tennessee to restore streams that flow through the University's Lone Oaks Farm.

Thus far, more than 4.6 million cubic yards of soil have been moved and enough stone has been laid to total more than the weight of 1,600 Statues of Liberty. More than 4,600 deep foundations have been installed.

Ford
Ford
Ford

While BlueOval City is Ford's biggest EV investment to date and part of the Model e arm of its two-pronged vehicle strategy, the company will also open the BlueOvalSK battery manufacturing facility in Glendale, Kentucky in 2025.

These sites will be crucial in Ford getting ahead of its rivals. While sales of EVs have been strong since the Mustang Mach-E launched and even stronger since the F-150 Lightning was announced, rivals like Chevrolet have announced a slew of affordable EVs, with the Equinox EV starting at $30,000. Ford needs to ensure a strong supply of affordable electric cars and trucks, which are expected to be bolstered in years to come by battery-powered versions of the Maverick and Ranger pickups, among others.

2022-2023 Ford F-150 Lightning Front-End View CarBuzz
2021-2023 Ford Mustang Mach-E Front Angle View CarBuzz

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