Ford to Invest $3.5bn to Build an EV Battery Plant in Michigan With China's CATL

Ford is investing $3.5 billion to build a lithium iron phosphate (LFP) EV battery plant in Marshall, Michigan. The plant – called BlueOval Battery Park Michigan – initially will employ 2,500 people when production of LFP batteries begins in 2026.

This new battery production facility will add approximately 35 gigawatt hours per year of new battery capacity for Ford in the US initially – capable of powering approximately 400,000 future Ford EVs.

LFP batteries are very durable and tolerate more frequent and faster charging while using fewer high-demand, high-cost materials. 

Even before the new battery plant opens, Ford will introduce LFP batteries on Mustang Mach-E in 2023, and F-150 Lightning in 2024.

This wholly owned subsidiary is part of Ford’s $50 billion+ global EV push.

Ford and its battery tech collaborators have announced $17.6 billion in investment in EV and battery production in the US since 2019, leading to more than 18,000 direct jobs in the U.S. and more than 100,000 indirect jobs.

Ford has also reached a new agreement with China's Contemporary Amperex Technology Co., Limited (CATL) – the world’s leading battery manufacturer.

Under the arrangement, Ford’s plant would manufacture the battery cells using LFP battery cell knowledge and services provided by CATL.

Ford engineers will integrate these LFP battery cells into its vehicles.

This new agreement adds to Ford’s existing battery capacity and available battery technology made possible through a series of collaborations – including with SK On and LG Energy Solution (LGES).

Jim Farley, Ford president and CEO, says: “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.”

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

LFP battery technology helps reduce reliance on critical minerals such as nickel and cobalt and is in line with Ford’s work to create an EV supply chain that upholds its commitments to sustainability and human rights.