As was widely anticipated, Ford Motor Co (NYSE: F) on Monday unveiled a $3.5 billion investment towards a new EV battery plant in Michigan.
The legacy automaker said the future plant will be located in Marshall, Michigan, creating 2,500 employment opportunities that will pay between $20 to $50 per hour. Ford said the plant would be the automaker’s wholly-owned subsidiary, but would use the technology expertise of Chinese-based Contemporary Amperex Technology Co Ltd. to eventually manufacture lithium iron phosphate (LFP) batteries sometime in 2026.
“Ford engineers will integrate these LFP battery cells into its vehicles. This new agreement with CATL adds to Ford’s existing battery capacity and available battery technology made possible through a series of key collaborations – including with SK On and LG Energy Solution (LGES),” read the automaker’s statement.
Michigan fought an aggressive battle against other states and countries for the new battery plant, with Ford eventually choosing the state because of its generous incentives for EV battery production. Also on Monday, the Michigan State Fund agreed to provide up to $210 million worth of incentives towards the project’s development.
In addition, Ford also has a shot at taking advantage of the federal government’s lucrative subsidies for automakers that set up domestic car manufacturing, which could offset manufacturing costs by upwards of $45 per kilowatt hour.
Information for this briefing was found via Ford and Twitter. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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