Ford mentioned Monday that it will spend $3.5 billion on a brand new battery plant in Marshall, Michigan, to fabricate nickel cobalt manganese batteries — what Ford makes use of on its EVs at present — along with lithium iron phosphate batteries, that are cheaper and made with extra broadly obtainable supplies in comparison with different ones. Ford says it’s the primary automaker to “commit” to constructing a plant for each within the U.S.
The official information comes days after it had been reported, and is unquestionably positively nice information for Marshall, the place Ford mentioned the battery plant — set to start out manufacturing in 2026 — will lead to 2,500 new jobs. Ford says it’ll name the plant BlueOval Battery Park Michigan, a part of its plan to ship two million EVs on an annual foundation by the tip of 2026.
Ford says the brand new lithium batteries — at first imported from CATL, then constructed on the plant — might be obtainable in Mustang Mach-E later this 12 months, and in F-150 Lightning subsequent 12 months. And whereas Ford will make the lithium batteries themselves when the plant is on-line, it’ll accomplish that after a brand new settlement with CATL to make use of their tech, with Ford wholly-owning the plant.
Ford will finally supply each lithium and nickel batteries in its EVs, and the one you select may find yourself being a perform of the place you reside. Ford says that lithium batteries are usually not solely cheaper however last more, whereas nickel batteries make extra vitality and energy, and are extra dependable in chilly climate.
Why Michigan? And why the U.S., as opposed to importing lithium batteries, as Tesla does and as Volvo, VW, and Stellantis appear to plan to do? Well, in accordance with Automotive News, the Inflation Reduction Act performed a component, as did the governor of Virginia.
Ford selected Michigan after Virginia’s governor, Republican Glenn Youngkin, eliminated his state from consideration, saying Ford’s partnership with CATL would function a “Trojan horse” for China into the U.S., serving to the Far East bolster its EV battery dominance and unfold its affect. Ford executives on Monday mentioned they’re conscious of potential political pitfalls, however that the contract is ready as much as give the automaker management of the plant’s operations.
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[Lisa Drake, Ford’s vice president of EV industrialization] mentioned the corporate additionally thought-about websites in Canada and Mexico however picked the U.S. after the Biden administration signed the Inflation Reduction Act, which incorporates tax credit for localizing battery manufacturing.
“The IRA was incredibly important for us,” Drake mentioned. “And frankly, it did what it’s intended to do.”
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The jobs will even be union, so long as a majority of employees signal playing cards in assist.
“Ford got it right by building this plant right here in Michigan,” UAW President Ray Curry mentioned in an announcement. “We supported the public investment into this facility as we know it will create good paying union jobs that will benefit the community and maintain strong wage and benefit standards in the auto industry.”
Source: jalopnik.com