According to reports, Ford is just days away from announcing a proposal to enhance its supply of US-made electric vehicle batteries. According to Reuters, the carmaker might launch a $3.5 billion iron phosphate battery facility outside of Marshall, Michigan, a tiny town about 100 miles west of Detroit, as early as Monday. When finished, the plant is planned to employ at least 2,500 people.
According to Bloomberg, Ford is proceeding with the project despite uncertainties over how the Treasury Department would interpret President Biden’s historic climate change measure. The Inflation Reduction Act, in particular, has wording that aims to ban manufacturers from claiming consumer EV tax credits if their vehicles use batteries manufactured by a “foreign company of concern.” The guidelines were devised by Congress to encourage automakers to create a local supply chain for EV parts rather than depending on China for crucial components.
According to Bloomberg, Ford has contemplated a structure in which it would own the whole factory as well as neighbouring infrastructure. The facility would also house Ford employees. CATL would solely own the battery manufacturing technology. This arrangement may allow batteries manufactured at the plant to qualify for Inflation Reduction Act-related tax credits. “We’ve stated that we’re investigating batteries based on CATL’s technology for Ford cars, which we want to localise,” a Ford representative told Bloomberg.
Ford said in July that it will begin purchasing batteries from CATL for US-bound 2023 Mustang Mach-E cars. The same month, the business revealed intentions to begin producing 40 gigatonnes of battery capacity in North America in 2026.
