Under a new agreement inked between Ford and LG, the companies will move production of EV batteries for the Ford Mustang Mach-E from Poland to its Michigan facility in 2025. This (of course) has everything to do with the IRA and tax credits.

“To capitalize on competitive market conditions,” the new agreement moves Ford Mach-E battery production to the US, where those batteries can take advantage of America’s various incentives. Over in Europe, LG plans to take advantage of incentives over there by supplying a total of 109 GWh of batteries to Ford for its electric commercial vans starting in 2026.

“These agreements attest to our experience and expertise in powering commercial vehicles with innovative battery technologies designed to handle extreme user environments,” said David Kim, CEO of LG Energy Solution. “Capitalizing on our local production capacity, we will secure leadership in the European market and deliver unmatched values to our customers through advanced battery technologies that effectively address diverse needs.”

It’s about Ford, but not ONLY about Ford

Ford isn’t the only automaker are also entering into strategic agreements to build out Americam battery supply chains in order to qualify for the (up to) $7,500 New Clean Vehicle Tax Credit on EVs and PHEVs. LG Energy also announced that it was investing $3 billion in its Michigan battery facility as part of a separate agreement to supply lithium to Toyota that will be used in batteries for future, US-built EVs.

In addition to the LG deal, Ford has a deal with SK On to build batteries in Kentucky for the updated E-Transit commercial van and F-150 Lightning electric pickup beginning mid-2025.

Electrek’s Take

Fossil fuels have enjoyed government subsidies in the form of government stockpiles, OPEC deals, and municipal fleet spending to build economies of scale for generations. As such, it’s only fair that a fraction of those subsidies trickle down (ha!) to the electric vehicle market. Ford, Toyota, GM, and everyone else moving their battery manufacturing to the US are doing it right.

While you’re thinking of all those incentives, click on the links below to see what kind of deals you can get on Ford Mustang Mach-E, Lightning, and Toyota bZ4X models near you:

SOURCE | IMAGES: LG Energy Solutions, via PR Newswire.