Ford to build $3.5 billion electric vehicle battery plant in Michigan

BBP News
2 min readFeb 15, 2023
Photo by Jessy Smith on Unsplash

Ford Motor Co. plans to build a $3.5 billion factory in Michigan that employs at least 2,500 people to make lower-cost batteries for various new and existing electric vehicles.

The factory will be built 100 miles west of Detroit and will be open for business in early 2026. Ford said it would 35-gigawatt gigawatt hours worth of batteries, enough to supply 400,000 vehicles per year Ford said.

The factory near the city of Marshall would produce batteries with lithium-iron-phosphate chemistry, which is cheaper than the current nickel-cobalt-manganese chemistry now used in many EV batteries. Consumers could then choose whether they wanted the battery with a lower range and cost, or pay more for a higher range and power. The company wouldn’t give any prices just yet.

Ford says a wholly-owned subsidiary would own the factory and employ the workers. But China’s Contemporary Amperex Technology Co. Limited, or CATL, which is known for its lithium-iron-phosphate expertise, would supply technology, some equipment, and workers.

Shortly after the announcement of building the new factory Ford announced they are stopping the production of the F-150 Lighting due to a potential battery problem.

The Michigan automaker began selling the F-150 Lightning last year. Company officials did not give a timeline for when production may restart. The production pause threatens Ford’s plan to deliver 600,000 Lightning trucks in 2023.

Since their release last May, Ford has sold 15,617 electric trucks, according to the most recent company data available. The company sold 2,436 of them in October, the most ever sold in one month.



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