Michigan Lands Ford’s New $3.5B LFP Battery Plant

Ford will build an LFP battery plant in Marshall, MI, part of the company’s more than $50 billion investment in EV production. The plant will employ 2,500 workers when production begins in 2026.

Ford announced today it will invest $3.5 billion to build the country’s first automaker-backed lithium iron phosphate (LFP) battery plant in Michigan, which will add a second battery technology to Ford’s electric vehicle (EV) lineup. The plant – dubbed BlueOval Battery Park Michigan – will employ 2,500 people when production of LFP batteries begins in 2026. Ford will have the option to further grow its battery capacity at its Marshall, MI plant, which will be part of a wholly owned Ford subsidiary.

With this $3.5 billion investment, Ford and its battery tech collaborators have announced $17.6 billion in investments in EV and battery production in the U.S. since 2019, as part of the company’s commitment to invest over $50 billion in electric vehicles globally through 2026. In the next three years, these investments will lead to more than 18,000 direct jobs in Michigan, Kentucky, Tennessee, Ohio and Missouri and more than 100,000 indirect jobs, according to the methodology from a 2020 independent study.

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

Ford Michigan
Governor Gretchen Whitmer announces Ford will invest $3.5 billion and create 2,500 jobs manufacturing EV batteries in Marshall, MI. (Photo: Governor Gretchen Whitmer / Facebook)

The new battery production facility in Michigan will add approximately 35 gigawatt hours per year of new battery capacity for Ford in the U.S. initially – capable of powering approximately 400,000 future Ford EVs.

Ford conducted a highly competitive, multi-state, multi-country site selection process to determine where to locate the new battery manufacturing facility and investment before choosing Michigan for the project.

“Ford’s $3.5 billion investment creating 2,500 good-paying jobs in Marshall building electric vehicle batteries will build on Michigan’s economic momentum,” said Governor Gretchen Whitmer. “Today’s generational investment by an American icon will uplift local families, small businesses, and the entire community and help our state continue leading the future of mobility and electrification. Let’s continue bringing the supply chain of electric vehicles, chips, and batteries home while creating thousands of good-paying jobs and revitalizing every region of our state. Since I took office, we’ve secured over 30,000 auto jobs and landed multiple electric vehicle and chip-making factories. We’re on the move, so let’s keep our foot on the accelerator.”

To support Ford’s investment, the Michigan Strategic Fund approved:

  • Critical Industry Program (CIP) through Strategic Outreach and Attraction Reserve Fund (SOAR) – $210 million
    • The Critical Industry Program will support a $3.5 million investment in Michigan that will lead to the creation of 2,500 new jobs.
  • MSF Designated Renaissance Zone – $772 million
    • The Renaissance Zone will reduce both real and personal property taxes for a period of 15 years
  • Jobs for Michigan Investment Fund Loan – $36 million
    • The MSF loan will be allocated to the Marshall Area Economic Development Alliance (MAEDA) to purchase, improve and transfer Marshall mega site parcels in and around Calhoun County. MAEDA will undertake site readiness activities at the project site in Calhoun County that are necessary to complete time sensitive activities, including land acquisition and site improvements.

“This project creates new opportunities for businesses of all sizes across the state to ensure that Michigan retains its strong supplier network and provides a platform for further investment throughout Michigan. Ford’s decision underscores the strength of our state’s automotive sector and the bipartisan, Team Michigan commitment to winning the future of mobility and battery manufacturing here in Michigan,” said Michigan Economic Development Corporation (MEDC) CEO and Michigan Strategic Fund President and Chair Quentin Messer Jr.

“We appreciate Ford’s continued vote of confidence and their partnership on this economic win for our friends and neighbors, and are encouraged by the positive economic impact it will have statewide for decades to come,” he added.

Building in Michigan, Ford will benefit from the Inflation Reduction Act – creating one of the lowest-cost U.S.-produced batteries when the plant comes online in 2026.

Ford is the first automaker to commit to build both nickel cobalt manganese (NCM) and LFP batteries in the U.S. As the company rapidly scales EV production, introducing LFP batteries allows Ford to produce more EVs and helps support the company’s goal of an 8 percent EBIT margin for Model e by 2026. In addition to LFP batteries being less expensive to produce, bringing this new LFP plant to America reduces traditional shipping and import costs. Building in Michigan, Ford will benefit from the Inflation Reduction Act – creating one of the lowest-cost U.S.-produced batteries when the plant comes online in 2026.

“Ford’s electric vehicle lineup has generated huge demand. To get as many Ford EVs to customers as possible, we’re the first automaker to commit to build both NCM and LFP batteries in the United States,” said Jim Farley, Ford president and CEO. “We’re delivering on our commitments as we scale LFP and NCM batteries and 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.”

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As part of Ford’s plan to offer a new battery chemistry and source in key regions where it produces EVs, Ford reached a new agreement with Contemporary Amperex Technology Co., Limited (CATL), the world’s leading battery manufacturer. Under the arrangement, Ford’s wholly owned subsidiary would manufacture the battery cells using LFP battery cell knowledge and services provided by CATL, which has operated 13 plants in Europe and Asia. Ford engineers will integrate these LFP battery cells into its vehicles. The 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).