Ford said it remains on track to begin production of lithium iron phosphate (LFP) batteries in the United States by 2026, reaffirming its plans despite mounting political headwinds and scrutiny over its technology partnership with Chinese battery giant CATL.
The $3 billion facility, under construction in Marshall, Michigan, is expected to add 35 gigawatt-hours of battery production capacity annually and create approximately 1,700 jobs. Ford says the plant will play a central role in reducing the cost of next-generation electric vehicles, aligning with its strategy to deliver more affordable EV options.
“This is a historic step for an American automaker,” said Lisa Drake, Ford’s vice president of EV industrialization, adding that the company “remains on track to start production of these batteries next year.”
The announcement comes as U.S. lawmakers, particularly Republicans in Congress, push to end federal support for battery plants using Chinese technology. Ford’s partnership with CATL has become a flashpoint, with a proposed bill seeking to restrict tax incentives for facilities relying on foreign tech and materials. Despite this, Ford is proceeding with preparations, including off-site production of C-sample LFP cells to support its upcoming EV models.
“To really deliver truly affordable electric vehicles,” Drake noted, “we decided years ago to build prismatic LFP batteries in the U.S.” She added that the move will also “pave the way to compete globally on energy storage production.”
Originally announced under the Biden administration’s clean energy initiatives, the project is expected to qualify for up to $700 million in federal tax credits. However, the future of such support may hinge on political developments heading into the 2024 U.S. elections.