Ford Motor Company (NYSE:F) has confirmed it is planning to build a US$3.5 billion electric vehicle (EV) battery plant in Michigan.
The factory will be built on a site some 100 miles west of Detroit and is pencilled in for start-up in 2026.
It is intended to produce a sufficient volume of lower-cost lithium iron phosphate (LFP) batteries to supply around 400,000 EVs (c35 gigawatt hours of capacity) and could see the motor company hire 2,500 people.
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Ford will be the first automaker to build its own LFP manufacturing capacity.
It highlighted that the plant will allow the company to give EV-buying customers more options – the other battery technology being used by Ford is nickel cobalt manganese (NCM).
LFP batteries are slated for use in new Ford Mustang E-Mach models later this year, followed by the roll-out of F-150 Lightning models in 2024.
“Ford’s electric vehicle lineup has generated huge demand,” said Ford chief executive Jim Farley.
“To get as many Ford EVs to customers as possible, we’re the first automaker to commit to building 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.”
Michigan Governor Gretchen Whitmer, in comments included in Ford's statement, added: “Ford’s US$3.5 billion investment creating 2,500 good-paying jobs in Marshall building electric vehicle batteries will build on Michigan’s economic momentum.”
“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,” Whitmer said.