Ford is now building low-cost LFP battery cells in the US that will power its $30,000 EV pickup

Ford began producing low-cost lithium iron phosphate (LFP) battery cells in the United States this week, marking a significant step in its electric vehicle (EV) strategy. These LFP cells will initially power Ford's upcoming $30,000 midsize EV pickup truck, making it the first mainstream EV in the U.S. to utilize this battery chemistry. The company's new battery plant in Michigan, which commenced operations on March 18, 2024, is designed to produce 20 gigawatt-hours (GWh) of LFP cells annually. This production capacity is sufficient to equip approximately 200,000 EVs per year. Ford's adoption of LFP batteries is a strategic move to reduce manufacturing costs, as LFP technology is generally less expensive than traditional nickel-manganese-cobalt (NMC) chemistries. This cost reduction is crucial for making EVs more accessible to a wider consumer base, aligning with Ford's goal of offering a more affordable EV pickup. The company anticipates that by 2026, approximately 40% of its EV production will utilize LFP batteries. This domestic production also aims to bolster the U.S. automotive supply chain and reduce reliance on foreign battery components. The new battery plant is expected to create around 175 jobs in the region.