- Ford Motor Company (F) wants to construct a $3.5 billion facility in Michigan that will employ at least 2,500 people and produce cheaper batteries for a variety of new and old electric vehicles. Battery production would begin in 2026 at the facility, which would be located on land being prepared for industrial development about 160 kilometers west of Detroit.
- Ford estimated that it would produce enough batteries annually to power 400,000 automobiles. The factory outside of Marshall would make lithium-iron-phosphate (LFP) batteries, which are less expensive than the nickel-cobalt-manganese chemistry now used in many EV batteries.
Why it matters
But this comes as tensions between the U.S. and China remain high, with the Biden administration providing tax incentives to companies building a U.S. supply chain for EV batteries. The use of metals or other components from China in EV batteries will be prohibited in order for customers to receive the full $7,500 per vehicle U.S. tax credit.
