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Ford Motor (NYSE: F) announced today a badly kept secret that it is investing $3.5 billion to build the first automaker-backed lithium-iron-phosphate battery (LFP) plant in Michigan or the US. The plant – called BlueOval Battery Park Michigan – will employ 2500 people when production of batteries begins in 2026. The LFP plant will add ~35 gigawatt hours (GWh) of LFP battery capacity. Ford will have the option expand battery capacity the plant, which will be part of a wholly-owned Ford subsidiary.
“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 Michigan Governor Gretchen 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.”
As part of Ford’s plan to offer a new battery chemistry and source in key regions where it produces EVs, Ford has reached a new agreement with Contemporary Amperex Technology Co., Limited (CATL) – the world’s leading battery manufacturer. Under the arrangement, Ford’s wholly owned subsidiary would manufacture the battery cells using LFP battery cell knowledge and services provided by CATL, which has operated 13 plants in Europe and Asia, but it is a Chinese firm? There are issues about its connections with the Chinese Communist party and the use of forced labor. (autoinformed.com on: Chinese CATL and Honda Alliance to Make EV Batteries, Technology and Maybe Autonomous Vehicles; EV Battery Gold Rush: Ford Has New Battery Capacity Plan; Ultium Cells and Li-Cycle to Expand Recycling in North America; Ford – EVs Present Environmental, Human Rights Issues)
Lithium iron phosphate batteries use fewer high-demand, high-cost materials such as critical minerals nickel and cobalt. Ford said they will power a variety of Ford’s next-generation of EV passenger vehicles and pickups, starting this year with Mustang Mach-E. A US LFP battery plant is now central to the so-called Ford+ plan because in theory it helps Ford more EV production quickly thereby making EVs more affordable for customers. Ford’s goal is an 8% EBIT margin for Model e by 2026. It is being pushed hard here by General Motors,* Toyota and other global automakers as they compete in the capital markets. (autoinformed.com on: GM’s Dual Platform Strategy – Doubling Revenues by 2030?; GM Raises 2022 Earnings, Offers 2023-25 Performance Goals; New Toyota Motor President Koji Sato on Evolution)
Ford and its battery tech collaborators have announced $17.6 billion in investment in EV and battery production in the United States since 2019, leading to more than 18,000 direct jobs in the U.S. and more than 100,000 indirect jobs.
“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 and a major shareholder in the company. “I am also proud that we chose our home state of Michigan for this critical battery production hub.”
*GM’s 2023-2025 Key Performance Indicators
- Total company revenue is expected to grow at a 12% compound annual rate through 2025, reaching more than $225 billion as EV volumes and software revenue grow. Revenue from EVs is expected to be more than $50 billion in 2025.
- GM expects to build 400,000 EVs in North America from 2022 through the first half of 2024 and increase capacity to 1 million units annually in North America in 2025.
- GM expects to reach U.S. battery cell capacity of more than 160 GWh and 1.2 million cells per day by mid-decade.
- GM is focused on reducing the cell costs for the next generation of its Ultium batteries to under $70/kWh by mid- to late-decade.
- Total capital spending is expected to be $11-13 billion per year through 2025, funded by ongoing healthy cash flows.
- GM expects to maintain its historical EBIT-adjusted margins of 8-10% in North America through this growth investment period.
- GM expects to earn low- to mid-single-digit EBIT-adjusted margins on its EV portfolio in 2025, before the positive impact of clean energy tax credits.
Michigan Chemistry – Ford to Spend $3.5B on LFP Battery Plant
Click for more information.
Ford Motor (NYSE: F) announced today a badly kept secret that it is investing $3.5 billion to build the first automaker-backed lithium-iron-phosphate battery (LFP) plant in Michigan or the US. The plant – called BlueOval Battery Park Michigan – will employ 2500 people when production of batteries begins in 2026. The LFP plant will add ~35 gigawatt hours (GWh) of LFP battery capacity. Ford will have the option expand battery capacity the plant, which will be part of a wholly-owned Ford subsidiary.
“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 Michigan Governor Gretchen 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.”
As part of Ford’s plan to offer a new battery chemistry and source in key regions where it produces EVs, Ford has reached a new agreement with Contemporary Amperex Technology Co., Limited (CATL) – the world’s leading battery manufacturer. Under the arrangement, Ford’s wholly owned subsidiary would manufacture the battery cells using LFP battery cell knowledge and services provided by CATL, which has operated 13 plants in Europe and Asia, but it is a Chinese firm? There are issues about its connections with the Chinese Communist party and the use of forced labor. (autoinformed.com on: Chinese CATL and Honda Alliance to Make EV Batteries, Technology and Maybe Autonomous Vehicles; EV Battery Gold Rush: Ford Has New Battery Capacity Plan; Ultium Cells and Li-Cycle to Expand Recycling in North America; Ford – EVs Present Environmental, Human Rights Issues)
Lithium iron phosphate batteries use fewer high-demand, high-cost materials such as critical minerals nickel and cobalt. Ford said they will power a variety of Ford’s next-generation of EV passenger vehicles and pickups, starting this year with Mustang Mach-E. A US LFP battery plant is now central to the so-called Ford+ plan because in theory it helps Ford more EV production quickly thereby making EVs more affordable for customers. Ford’s goal is an 8% EBIT margin for Model e by 2026. It is being pushed hard here by General Motors,* Toyota and other global automakers as they compete in the capital markets. (autoinformed.com on: GM’s Dual Platform Strategy – Doubling Revenues by 2030?; GM Raises 2022 Earnings, Offers 2023-25 Performance Goals; New Toyota Motor President Koji Sato on Evolution)
Ford and its battery tech collaborators have announced $17.6 billion in investment in EV and battery production in the United States since 2019, leading to more than 18,000 direct jobs in the U.S. and more than 100,000 indirect jobs.
“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 and a major shareholder in the company. “I am also proud that we chose our home state of Michigan for this critical battery production hub.”
*GM’s 2023-2025 Key Performance Indicators