Final week, Ford Motor Firm introduced plans to construct a brand new $3.5 billion battery plant that may produce LFP cells utilizing know-how licensed from China’s CATL.

Whereas the BlueOval Battery Park Michigan facility will not begin manufacturing earlier than 2026, Ford has introduced it is going to begin utilizing lithium iron phosphate (LFP) batteries in its EVs as early as this yr.

The primary mannequin to get LFP batteries is the Mustang Mach-E, albeit solely in Europe in the meanwhile. The F-150 Lightning will even achieve LFP batteries in 2024 in key international markets with a purpose of decreasing wait instances for patrons. The automaker didn’t reveal battery capacities, vary, and charging instances. It did not identify the provider both, however numerous studies declare it is CATL.

Ford says the transfer is a part of its “dedication to creating EVs extra reasonably priced and accessible to prospects.” The corporate’s technique is to diversify and localize its battery provide chain within the areas the place it builds EVs with a view to enhance availability and affordability for patrons whereas strengthening shopper demand.

Because the automaker scales EV manufacturing, introducing LFP batteries permits it to construct extra electrical automobiles and supply extra selections to new prospects. 

The brand new LFP battery chemistry will not exchange the nickel cobalt manganese (NCM) chemistry as each can be supplied in parallel. Ford says this can enable prospects to decide on an EV “with distinctive battery efficiency traits most aligned with their wants.”

In line with Ford, LFP batteries will even assist it keep or additional scale back EV costs for shoppers as these batteries use fewer high-demand, high-cost supplies, are very sturdy and tolerate extra frequent and quicker charging.

Sooner or later, LFP batteries will energy a wide range of reasonably priced, next-generation Ford EV passenger automobiles and vans below growth, the automaker says.

“Ford’s electrical automobile line-up has generated large demand. We’re delivering on our commitments as we scale LFP and NCM batteries and 1000’s, and shortly hundreds of thousands, of consumers will start to reap the advantages of Ford EVs with cutting-edge, sturdy battery applied sciences which are rising extra reasonably priced over time.”

Jim Farley, Ford president and CEO

Ford says LFP battery tech additionally helps scale back reliance on important minerals reminiscent of nickel and cobalt. The Blue Oval is working to ship an annual run fee of 600,000 electrical automobiles globally by the top of this yr and a pair of million worldwide by the top of 2026 as a part of its Ford+ plan. To make that occur, the carmaker will make investments over $50 billion in EVs globally by 2026.