Determined to bolster its electric vehicle business, Ford has confirmed plans to invest about $3.5 billion in a new battery manufacturing plant in Michigan. The U.S. auto giant will partner with China-based Amperex Technology on the upcoming factory in Marshall.
Ford has said it expects the facility to be operational by 2026 and will employ about 2,500 people there. The plant will produce new lithium iron phosphate batteries, which are more affordable than the nickel-cobalt-manganese batteries the company currently uses.
That would boost Ford’s ambitions in particular, as it looks to increase its manufacturing capacity for electric vehicles while reducing the cost of batteries. The overriding goal is to make EVs more affordable to end buyers to further increase demand. Ford Chief Executive Jim Farley has repeatedly stressed the need to reduce battery costs, expressing confidence that this will not be a major factor in the times ahead.
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Currently, the United States has a federal tax credit of up to $7,500 (approx. ¥615,000) on EVs assembled in North America. Once the Michigan plant is up and running, the company’s vehicles will be eligible for about half of the incentive amount, Ford officials said.
In addition to hybrids, Ford currently offers all-electric models like the Mach-E and F-150 Lightning pickup. The company is looking to increase its share of the U.S. electric vehicle market, which is dominated by Tesla and where competition from rivals such as General Motors, Hyundai and Kia is heating up.
First published date: Jun 19, 2023 at 09:51 AM CST
https://auto.hindustantimes.com/auto/electric-vehicles/ford-to-build-multi-crore-electric-vehicle-battery-manufacturing-facility-in-us-41687146918243.html