Ford has announced it is investing $3.5 billion ($AU5.1 billion) to build an LFP (Lithium Iron Phosphate) battery plant in Michigan in the US.

LFP batteries comprise a different lithium-ion battery chemistry, and use less of the high-demand materials, than the NMC (Lithium Nickel Manganese Cobalt) batteries used in many electric vehicles. While it is considered that LFPs may not deliver quite the same performance as NMCs, they do, said Ford, last longer, are exceptionally durable and are cheaper thanks to the more readily available materials from which they are made.

Ford will continue to offer NCM batteries too and said that having both variants available would allow its customers to choose an EV with ‘battery performance characteristics most aligned with their needs.’

At a presentation held in February announcing the investment, Ford said the plant, which will utilise tech from battery manufacturer CATL, would start production in 2026 and was part of the company’s plans to diversify and localise its battery supply chain where it builds EVs and improve availability and affordability for customers. The company said it is working to deliver 600,000 EVs globally per year by the end of this year and 2 million globally by the end of 2026.

The new battery production facility will add approximately 35 gigawatt hours per year of new battery capacity for Ford in the US initially – capable of powering approximately 400,000 EVs. Before the new plant is built, however, Ford will start using LFP batteries in some of its vehicles, with the Mustang Mach-E to get them this year, and the F-150 Lightning in 2024.

Source: Motor Trader e-Magazine (Mar 2023)

14 March 2023