Ford is Pouring Billions into EVs
2 New EV Mega Manufacturing Plants in the US
$11.4 Billion for Electrification
Ford, along with South Korea's SK Innovation energy company, are investing $11.4 billion to build two, huge manufacturing facilities for electric vehicles in Kentucky and Tennessee. Ford is partnering with SK on the development and manufacturing of much less expensive lithium-ion batteries to bring down the price of Ford electric vehicles and make them much more affordable to the average consumer. Ford is investing $7 billion in the project. SK is investing $4.4 billion. That is the biggest manufacturing investment in Ford's 118 year history. The projects will create 11,000 new US jobs and the facilities are expected to be up and running by 2025.
Ford's Big Electric Plans
Ford's plans for electric vehicles are big as it shifts away from gas powered vehicles. The company will invest a total of $30 billion into EVs by 2025. It expects 40% of its global sales will be electric by 2030. The 2 new facilities will greatly expand production of electric vehicles and will be particularly impactful on battery development which is crucial to success. Ford's new battery production facilities will be producing 60 gigawatt hours of battery power or enough to power 1.5 million EVs annually. Ford is targeting a battery pack price of $80.00 which is dramatically less than today's $200.00 average cost. An $80 battery pack would cut the cost of a Mustang Mach-E, with a 300 mile 98 kwh battery, by over $10,000 - making the EV very close in price to a gas powered vehicle. Ford believes that kind of price reduction will greatly increase EV sales.
Tennessee & Kentucky
The Tennessee site, just outside of Memphis, is three-times larger than any other Ford facility in the US. Called Blue Oval City, it will be a center for building the next generation of F-Series electric trucks. The Blue Oval SK Battery Park will manufacture lithium-ion batteries and recycle battery materials. There will also be space for parts suppliers in order to avoid any problems or delays in the supply chain. The Kentucky facility will contain two plants for the production of lithium ion batteries. All the facilities are designed to be carbon neutral.
Ford's Acceleration Toward EVs
Ford entered the EV market in 2020 with the Mustang Mach E. The Ford E-Transit commercial van will go on sale in late 2021. And the much anticipated Ford F-150 Lightning electric pickup truck will hit the markets in 2022. As Ford greatly expands its electric footprint, it is also investing $525 million across the US to train EV repair technicians. Ford's investments are a big, 360 degree push into going electric and also bringing down the cost of EVs for consumers to increase demand for these zero emissions electric vehicles.
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