COLOGNE, Germany, Feb. 16, 2023 – Ford will this year introduce lithium iron phosphate (LFP) batteries to the Mustang Mach-E line-up 1 in Europe, as part of the company’s commitment to making EVs more affordable and accessible to customers.
Ford has also announced it is investing $3.5 billion to build the first automaker-backed LFP battery plant in the U.S. – called BlueOval Battery Park Michigan – which will open in 2026.
Diversifying and localising Ford’s battery supply chain in the regions where it builds EVs will improve availability and affordability for customers while strengthening consumer demand. Ford is working to deliver an annual run rate of 600,000 electric vehicles 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 Ford to produce more electric vehicles and offer more choices to new EV customers and helps support the company’s goal of an 8 percent EBIT margin for Model e by 2026.
“We are committed to leading the electric vehicle revolution, 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.
LFP battery chemistry to benefit Ford customers
Offering LFP as a second battery chemistry – in addition to nickel cobalt manganese (NCM) – allows Ford customers to choose an electric vehicle with unique battery performance characteristics most aligned with their needs.
LFP batteries are very durable and tolerate more frequent and faster charging while using fewer high-demand, high-cost materials. This lower-cost battery, at scale, will help Ford contain or even further reduce EV prices for customers. These LFP batteries will power a variety of affordable, next-generation Ford EV passenger vehicles and trucks under development.
“Ford’s electric vehicle line-up has generated huge demand. 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,” said Jim Farley, Ford president and CEO.
Even before the new battery plant opens in Marshall, Michigan, U.S., Ford will introduce LFP batteries on Mustang Mach-E this year and F-150 Lightning in 2024 in key global markets, with a goal of reducing wait times for customers.
LFP battery technology also helps reduce reliance on critical minerals such as nickel and cobalt, and is in line with Ford’s work to create an EV supply chain that upholds its commitments to sustainability and human rights.
Ford has committed to invest over $50 billion in electric vehicles globally through 2026 and is also already committed to achieving carbon neutrality globally across its vehicles, operations and supply chain by 2050. The company is targeting zero emissions for all vehicle sales in Europe and carbon neutrality across its European footprint of facilities, logistics and suppliers by 2035.
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1 In accordance with the Worldwide Harmonized Light Vehicles Test Procedure (WLTP). A range of up to 600 km (intended target value according to WLTP) can be achieved with a fully charged battery - depending on the existing series and battery configuration. The actual range may vary due to various factors (e.g. weather conditions, driving style, route profile, vehicle condition, age and condition of the lithium-ion battery).
Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, committed to helping build a better world, where every person is free to move and pursue their dreams. The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities and always-on relationships with customers to enrich experiences for customers and deepen their loyalty. Ford develops and delivers innovative, must-have Ford trucks, sport utility vehicles, commercial vans and cars and Lincoln luxury vehicles, along with connected services. The company does that through three customer-centered business segments: Ford Blue, engineering iconic gas-powered and hybrid vehicles; Ford Model e, inventing breakthrough EVs along with embedded software that defines always-on digital experiences for all customers; and Ford Pro, helping commercial customers transform and expand their businesses with vehicles and services tailored to their needs. Additionally, Ford is pursuing mobility solutions through Ford Next, and provides financial services through Ford Motor Credit Company. Ford employs about 173,000 people worldwide. More information about the company and its products and services is available at corporate.ford.com.
Ford, a global American brand woven into the fabric of Europe for more than 100 years, is committed to freedom of movement that goes hand-in-hand with looking after the planet and each other. The company’s Ford+ plan, with Model e, Ford Pro and the Ford Blue business units is accelerating its European transformation to an all-electric and carbon neutral future by 2035. The company is driving forward with bold, new EVs, each one designed with European drivers in mind and innovating with services to help people connect, communities grow, and businesses thrive. Selling and servicing Ford vehicles in 50 individual European markets, operations also include the Ford Motor Credit Company, Ford Customer Service Division and 14 manufacturing facilities (eight wholly owned and six unconsolidated joint venture facilities) with four centres based in Cologne, Germany; Valencia, Spain and at our joint venture in Craiova, Romania and Kocaeli, Türkiye. Ford employs approximately 34,000 people at its wholly owned facilities and consolidated joint ventures and approximately 54,000 people including unconsolidated businesses across Europe. More information about the company, its products and Ford Credit is available at corporate.ford.com.
