As part of a newly inked agreement between Ford and LG, the companies have reached an accord to relocate production of electric vehicle batteries for the Ford Mustang Mach-E from Poland to their Michigan facility by 2025. In reality, this topic relates to the Individual Retirement Account (IRA) and tax credits.
To seize a competitive edge in today’s aggressive market landscape, Ford has announced a landmark decision: relocating its Mach-E battery production to the United States. By doing so, the company will capitalize on America’s generous incentives designed to support domestic battery manufacturing. In Europe, LG aims to capitalise on incentives by providing a total of 109 GWh of batteries to Ford for its electric commercial vans starting in 2026.
“As a testament to our unwavering commitment to innovation, these agreements demonstrate our mastery in developing cutting-edge battery solutions tailored to meet the demands of high-performance industrial applications.” “We’re leveraging our in-house manufacturing expertise to secure a strong foothold in the European market, delivering unparalleled value to customers through cutting-edge battery technologies that effectively address diverse needs.”
The evolution of electric vehicles? That’s a story worth telling. As the automotive industry continues to shift towards sustainability, Ford is leading the charge with its innovative offerings. The Mustang Mach-E, in particular, has been making waves with its impressive range and affordability. But let’s not forget the pioneers who paved the way for this revolution – companies like Tesla and General Motors, whose early investments in EV technology have laid the groundwork for today’s advancements.
Ford isn’t the only automaker entering into strategic agreements to establish American battery supply chains, allowing them to qualify for the up to $7,500 New Clear Automobile Tax Credit on EVs and PHEVs. LG Energy also announced that it was investing $3 billion in its Michigan battery facility as part of a separate deal to provide lithium to Toyota, which will be used in batteries for future US-built EVs.
Ford has partnered with SK On to manufacture batteries in Kentucky for its upcoming E-Transit electric industrial van and F-150 Lightning electric pickup, both set to roll off the production line by mid-2025.
Electrek’s Take
Fossil fuels have long benefited from government subsidies in the form of authority stockpiles, OPEC offerings, and municipal fleet expenditures, enabling them to build economies of scale over generations. It’s frankly surprising that only a meager proportion of those subsidies actually filter down to the electric vehicle sector. As major automotive brands such as Ford, Toyota, and General Motors pivot their battery production to the United States, they’re making a shrewd move.
As you weigh the benefits of various incentives, explore the links below to discover the deals available for Ford Mustang Mach-E, Lightning, and Toyota bZ4X models in your area.
LG Vitality Options are now available for consumers to enhance their well-being through personalized health and wellness coaching, digital tools, and expert guidance, as announced by PR Newswire.
