Ford taps Michigan for new LFP battery plant

Ford Executive Chairman Bill Ford announces a $3.5 billion investment plan for a lithium iron phosphate (LFP) battery plant in Marshall, Mich.

Ford Motor Co. has announced it is investing $3.5 billion to build the country’s first automaker-backed LFP battery plant, offering customers a second battery technology within Ford’s EV lineup.

The BlueOval Battery Park Michigan initially 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, Mich., plant, which will be part of a wholly owned Ford subsidiary.

Diversifying and localizing Ford’s battery supply chain in the countries where it builds electric vehicles will improve availability and affordability for customers. Ford is working to deliver an annual run rate of 600,000 EVs globally by the end of this year and 2 million globally by the end of 2026 as part of its Ford+ plan. As the company rapidly scales EV production, introducing LFP batteries allows the automaker to produce more EVs and offer more choices to new EV customers.

LFP batteries are durable and tolerate more frequent and faster charging while using fewer high-demand, high-cost materials, the automaker reports. They will power a variety of Ford EV passenger vehicles and trucks under development, most of which will be assembled in the U.S.

This new production facility will add about 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.