Ford announced it is moving forward with its $3.5B EV battery plant partnership with Chinese firm Contemporary Amperex Technology Co. (CATL).
The decision comes amid growing tensions between the U.S. and China. The Michigan-based plant is expected to open in 2026 and employ about 2,500 people.
- Last month, Virginia Gov. Glenn Youngkin withdrew the state from bidding for the plant, citing Ford’s connection with CATL.
- Youngkin said he would not allow taxpayer money to be used to recruit Ford as a front for China.
- Ford plans to own the new facility through a solely owned subsidiary instead of operating it as a joint venture with CATL.
- The U.S. automaker will license the technology from CATL, including technical expertise.
- The new plant will produce lithium iron phosphate (LFP) batteries instead of the more expensive nickel cobalt manganese batteries the automaker currently uses in its vehicles.
- Ford Chair Bill Ford said that manufacturing the batteries in the U.S. would help the automaker build more EVs faster and would ultimately make the vehicles more affordable for customers.
