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Ford is reportedly partnering with the world’s largest supplier of EV battery cells, China’s CATL, for a plant in Michigan that will manufacture them for Ford’s upcoming electric vehicles, according to reports Friday afternoon from the Detroit News and Bloomberg.
Outside of Ford’s $11.4 billion electric truck manufacturing complex in Tennessee and Kentucky and BlueOvalSK’s venture with South Korea’s SK On, the location reportedly chosen around Marshall, Michigan, may prove to be the industry’s most important operation as the automaker seeks greater profit from EV.
BlueOvalSK Battery Park – rendering, September 2021
According to a Detroit News report, the project could create around 2,500 jobs and attract at least $2.5 billion in investment. Under an arrangement that appears to deviate from existing joint ventures, Ford will own the land and factories, manage the workforce, and receive state incentives.
The facility will reportedly manufacture lithium-iron-phosphate (LFP) batteries, which tend to be less expensive. Because the supply of the essential materials they needed was more stable, the materials that went into them were less susceptible to price volatility. The downside though is that these cells are somewhat heavier for the amount of energy they store, and charging in cold weather can slow down dramatically.
Third generation CATL cell-to-pack technology
This may no longer be a loss by the time the vehicle reaches the market. CATL has demonstrated LFP cells, in combination with its newest cell-to-package technology, can achieve energy densities that approach those of current lithium-ion batteries.
Ford said last year that LFP batteries tied to the Mustang Mach-E, Ford F-150 Lightning, and possibly other products, as they scale up, might allow Ford to cut prices as EV price wars pending and/or reach a larger market share. profitability.
CEO Jim Farley said last week that future Ford electric vehicles would be “radically simplified”, as it seeks to use the smallest possible battery pack, minimize parts, and streamline the assembly process for upcoming electric vehicles.
According to reports, an announcement about the facility will be made on Monday.
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