Ford is on observe to begin producing LFP batteries within the US subsequent yr, an enormous milestone because it prepares to launch its lower-cost, next-gen EVs. The corporate mentioned that the brand new facility will assist ship “really inexpensive automobiles” and likewise allow the US to lastly compete globally.
Ford will begin LFP battery manufacturing in 2026 for brand new EVs
Though the brand new battery plant was introduced over two years in the past below the Biden administration, Ford confirmed this week that it’s nonetheless on observe to begin manufacturing in 2026.
Ford invested $3 billion to construct the LFP battery plant in Marshall, Michigan, however anticipated to obtain roughly $700 million in federal tax credit to assist offset the fee.
With the Trump administration and Republicans in Congress aiming to finish incentives for electrical automobiles, batteries, and different clear power tasks, Ford might face an uphill battle.
Since Ford is licensing battery and manufacturing tech from China’s CATL, it’s particularly weak. Republicans in Congress are already working to cross a invoice that may ban federal assist for US battery vegetation utilizing tech, supplies, and different provides from China.
Regardless of this, the automaker is standing by the ability. Lisa Drake, Ford’s vp of know-how platform packages and EV programs, confirmed on Monday that the corporate “stays on observe to begin manufacturing of those batteries subsequent yr.”
Drake mentioned the ability is “a historic step” for an American automaker because it prepares to construct LFP battery cells and battery packs domestically.
Ford is already producing C-sample cells at an off-site tools provider location, which might be used for its next-generation EV program.
“To essentially ship really inexpensive electrical automobiles,” Drake defined, Ford determined to construct prismatic LFP batteries within the US years in the past.
The plant will assist decrease EV prices whereas “permitting the US to lastly construct LFP batteries at scale and pave the way in which to compete globally on power storage manufacturing,” in line with Ford’s exec.
As soon as up and working, Ford expects so as to add round 35 GWh of LFP battery capability and roughly 1,700 new staff.
Electrek’s Take
Though it was a primary mover within the US with the electrical Mustang Mach-E, F-150 Lightning, and E-Transit, Ford has delayed or canceled a number of EV tasks, together with plans for a three-row electrical SUV.
The LFP battery plant remains to be on observe and is anticipated to be a cornerstone behind Ford’s push for lower-cost EVs within the US.
Throughout a candid dinner dialogue (by way of Axios) earlier this month with Daniel Roeska, Bernstein’s lead automotive analyst, Drake revealed just a few new particulars behind Ford’s low-cost EV platform.
Roeska mentioned that “Lisa Drake was express: Ford intends to match the fee construction of main Chinese language gamers,” in a word to traders, including “Meaning not simply battery pricing, however full system price from chassis and thermal programs to inverters and electronics.”
Drake additionally defined that the next-gen EV platform will assist eight physique kinds, together with vehicles, crossover SUVs, and possibly even sedans.
The primary EV constructed on Ford’s new low-cost platform, a midsize electrical pickup, is anticipated to resemble its present Ranger.
Because of the brand new electrical Equinox, or “America’s most inexpensive 315+ mile vary EV,” as GM calls it, Chevy is outselling Ford within the US. By way of Could, Chevy offered over 37,000 in comparison with Ford, which offered 34,000.
Will Ford’s upcoming lower-cost fashions assist it regain the lead? Tell us your ideas beneath.
