U.S. Target for Battery Production: Ford Aims to Domesticate Battery Manufacturing
Ford is set to revolutionise its electric vehicle (EV) production with the introduction of lithium iron phosphate (LFP) batteries, starting in 2026 at its BlueOval Battery Park in Michigan. This move is part of a broader $5 billion investment, aimed at making EVs more accessible to consumers by producing vehicles under $30,000[1][3][4].
The switch to LFP technology comes as Ford licenses the technology from Chinese battery maker CATL, making it the first US automaker to independently manufacture LFP cells for automotive use[1][2]. This move is expected to help Ford compete with Chinese EV manufacturers and reduce reliance on imported batteries. Ford's new battery factory in Michigan, initially planned to cost $3.5 billion, has been scaled down to around $2 billion[6].
The BlueOval Battery Park will produce LFP batteries for Ford's first LFP-based midsize electric pickup, set to launch in 2027 from the Louisville, Kentucky plant[3][4]. The plant, which will employ 1,700 workers instead of the initially planned 2,500, will also focus on innovation in manufacturing efficiency, aiming to create nearly 4,000 U.S. jobs and strengthen domestic supply chains[3][4].
In addition to LFP batteries, Ford is also exploring solid-state battery technology. Solid Power, a third partner in the joint venture, is developing next-generation battery tech, specifically solid-state batteries (SSBs). However, no specific production plans or timelines for Ford in 2024 or beyond were found in the available sources[5].
Ford's new batteries are expected to offer advantages such as durability, faster charging, and lower cost compared to traditional nickel cobalt manganese (NCM) chemistries Ford previously used[5]. All Mustang Mach-E Standard Range batteries will now use LFP instead of NCM, and CATL will provide LFP battery packs for the Mach-E SUV and the F-150 Lightning in North America starting in early 2024[7].
The Michigan factory will not produce batteries based on nickel manganese cobalt (NMC) chemistry. Ford is working with CATL to produce LFP battery cells, and it received full-scale 100-ampere hour cells from Solid Power in 2022[4][5]. Ford is developing specific battery cell designs for long-range models with Solid Power, its partner in solid-state battery technology[5].
However, the shift to LFP batteries and the licensing agreement with CATL may face potential challenges. Political tensions between the US and China could pose obstacles for the licensing agreement in the future[8]. Some rumors suggest Ford's new Ford Taurus may have a sodium solid-state battery, but it will only be available in the Middle East[9].
In conclusion, Ford's shift to LFP batteries is a significant step towards making EVs more affordable for consumers. The BlueOval Battery Park in Michigan will produce LFP batteries starting in 2026, with the first LFP-based midsize electric pickup set to launch in 2027. Ford is also exploring solid-state battery technology, but no specific production plans or timelines have been announced yet. The shift to LFP batteries and the licensing agreement with CATL may face challenges due to political tensions between the US and China.
[1] Ford to Produce LFP Batteries at Michigan Plant [2] Ford Licenses LFP Technology from CATL for Domestic Production [3] Ford Invests $5 Billion in Michigan and Kentucky for EV Production [4] Ford to Create Nearly 4,000 U.S. Jobs with BlueOval Battery Park [5] Ford's New Batteries: LFP and Solid-State Technology [6] Ford Scales Down Investment for Michigan Plant [7] CATL to Provide LFP Battery Packs for Ford's EVs in North America [8] Political Tensions between US and China may Affect Licensing Agreement with CATL [9] Rumors of Ford Taurus with Sodium Solid-State Battery in Middle East Market
The Ford Motor Company, as part of its $5 billion investment in electric vehicle (EV) production, is delving into technology, financing the production of lithium iron phosphate (LFP) batteries, and exploring solid-state battery technology [5]. With the BlueOval Battery Park in Michigan planned to commence LFP production in 2026, Ford intends to compete in the industry with cheaper EVs, priced under $30,000 [3][4].
