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Ford Announces $3.5B LFP Battery Plant in Michigan

Ford Battery Announcement

Ford unveiled plans to build a lithium iron phosphate (LFP) battery plant in Michigan, a $3.5 billion investment that will create 2,500 new jobs.

LFP is a new battery chemistry for the automaker, one that offers a number of advantages over traditional nickel cobalt manganese (NCM). LFP batteries are more durable, can be charged faster, and use less high-demand materials in their construction.

Ford’s new Michigan-based plant, BlueOval Battery Park Michigan, will create both NCM and LFP batteries, initially employing 2,500 workers. The company will be able to ramp up beyond that initial number as demand increases.

“We are committed to leading the electric vehicle revolution in America, and that means investing in the technology and jobs that will keep us on the cutting edge of this global transformation in our industry,” said Bill Ford, Ford executive chair. “I am also proud that we chose our home state of Michigan for this critical battery production hub.”

Initial production at the new plant is slated for 2026, but the company plans to incorporate LFP batteries in the Mustang Mach-E as soon as this year, and in the F-150 Lightning in 2024.

“Ford’s electric vehicle lineup has generated huge demand. To get as many Ford EVs to customers as possible, we’re the first automaker to commit to build both NCM and LFP batteries in the United States,” said Jim Farley, Ford president and CEO. “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.”

News of the investment was welcomed by Michigan Governor Gretchen Whitmer:

“Ford’s $3.5 billion investment creating 2,500 good-paying jobs in Marshall building electric vehicle batteries will build on Michigan’s economic momentum,” said Governor Whitmer. “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. Let’s continue bringing the supply chain of electric vehicles, chips, and batteries home while creating thousands of good-paying jobs and revitalizing every region of our state. Since I took office, we’ve secured over 30,000 auto jobs and landed multiple electric vehicle and chip-making factories. We’re on the move, so let’s keep our foot on the accelerator.”