Ford to Build $3.5B Michigan Battery Factory With Chinese Tech

Ford plans to build a $3.5 billion electric-vehicle battery plant in Michigan using technology licensed from a Chinese company.

The BlueOval Battery Park Michigan factory, located in the rural town of Marshall, will create 2,500 jobs when production of lithium iron phosphate (LFP) batteries begins in 2026.

As part of Ford's $50 billion-plus global EV push, the automakerinked a deal(Opens in a new window)with battery manufacturer Contemporary Amperex Technology Co. Limited (CATL). Founded in 2011 and headquartered in China, the company specializes in lithium-ion batteries for EVs, energy storage systems, and battery management systems (BMS).

Ford says it's mindful of the political tensions between the US and China at the moment, from the current hysteria overspy balloonsto longer-tail disagreements overtariffsandexportsto China.

"It's really important to understand that Ford controls the plant," Lisa Drake, VP of EV industrialization at Ford,toldThe Washington Post(Opens in a new window). CATL personnel will help set up, but "we will operate the facility. It will be a Ford plant manager," she said.

In the next three years, Ford will import CATL batteries to the US for use in itsMustang Mach-E(2023) andF-150 Lightning(2024) models, thePostreports.

"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," Ford executive chair Bill Ford said in a statement. "I am also proud that we chose our home state of Michigan for this critical battery production hub."

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Ford will soon offer two EV battery chemistries, each with unique benefits: the lower-cost LFP offers more durability and charging tolerance, while nickel cobalt manganese (NCM) provides more energy and power, and performs better incold weather.

"We're delivering on our commitments as we scale LFP and NCM batteries," said Ford President and CEO Jim Farley. "Thousands, and soon millions, of customers will begin to reap the benefits of Ford EVs with cutting-edge, durable battery technologies that are growing more affordable over time."

The plant, once up and running, will add approximately 35 gigawatt hours per year of new Ford battery capacity—enough to power approximately 400,000 future electric vehicles.