Ford Motor Company has announced plans to invest $3.5 billion in a new electric vehicle (EV) battery plant in Michigan. This plant will be Ford’s largest in the United States, creating around 10,800 employees in the state.
The Michigan EV battery plant will manufacture batteries for a variety of Ford electric cars, including the future F-150 Lightning pickup truck and other EVs in the company’s pipeline. The factory will have an annual capacity of 100 gigatonne-hours (GWh) of battery cells, which is enough to power about 1 million electric vehicles.
The announcement follows the rejection of Ford’s bid to establish the same plant in Virginia. Governor Ralph Northam rejected the Virginia Economic Development Partnership’s proposal for the facility because it did not fit the state’s economic development priorities.
Ford therefore decided to locate the new facility in Michigan, where the business already has a substantial manufacturing presence. Michigan Governor Gretchen Whitmer hailed the move, saying it will help create thousands of new jobs and strengthen Michigan’s status as an automotive industry leader.
This action is also consistent with President Biden’s goals to boost domestic manufacturing and hasten the transition to electric automobiles. President Biden said in a statement, “This is a significant investment in America’s future and a critical component of my Build Back Better plan.”
The Michigan EV battery plant will be developed on a 640-acre site in Stanton, Michigan, and production is scheduled to begin in 2025. The facility will use environmentally friendly manufacturing procedures and will be fueled by renewable energy sources such as wind and solar.
The new EV battery facility announcement is part of Ford’s larger ambition to invest extensively in electric vehicles and decrease its carbon impact. The business has pledged to invest $22 billion in electric vehicles through 2025, with the goal of having 40% of its global car sales be electric by 2030.
Ford has announced plans to create an electric version of its famous Transit van, as well as an electric Mustang, in addition to the F-150 Lightning. In addition, the company is collaborating with Volkswagen to develop EV platforms and technology.
Overall, Ford’s decision to locate its new EV battery plant in Michigan represents a substantial investment in the automotive industry’s future and the transition to electric vehicles. The move also emphasises the significance of state and federal policy in promoting domestic production and hastening the adoption of sustainable technologies.