Ford is moving forward with the construction of its battery plant near Detroit, aiming to produce lithium-iron-phosphate (LFP) battery cells on a domestic scale.
The project represents not only a strategic leap toward more affordable electric vehicles but also a symbolic homecoming for a battery technology that was born in the US and later perfected in China.
Despite political headwinds against the further adoption of EV technology by American citizens, Ford has decided to proceed with its BlueOval Battery Park project in Michigan, an investment of $3.5 billion (€3.0 billion). The automaker is the first in the US to construct such a plant, even if compatriots like Tesla also use LFP chemistries.
400,000 EVs
When operational in 2026, the facility will supply up to 35 gigawatt-hours of LFP capacity. That’s enough to power roughly 400,000 EVs annually.
Ford plans to employ approximately 2,500 workers, underscoring its long-term commitment to American manufacturing amid growing scrutiny of foreign supply chains.
“This is a pivotal moment,” said Lisa Drake, Ford’s vice president of EV Systems. “We’re reclaiming a piece of technology that slipped through our grasp and bringing it back home.”
The move makes Ford the only automaker in the US to produce both LFP and nickel-cobalt-manganese (NCM) batteries domestically. The LFP chemistry, prized for its lower cost and durability, is central to Ford’s strategy to build affordable EVs at scale.
Unlike NCM cells, LFP batteries can be charged to 100% regularly without degradation, and their simpler mineral composition reduces dependence on ethically debatable and geopolitically complex supply chains.
Developed in 1996
Lithium iron phosphate (LFP) batteries, although now largely dominated by Chinese manufacturers, were developed in 1996 by American researchers John B. Goodenough and Akshaya Padhi.
Despite its safety and durability advantages, the US failed to scale production, allowing Chinese firms like CATL and BYD to take the lead. So, with the Michigan plant, Ford is attempting to reclaim a technology that originated in its backyard.
However, the road to “bringing LFP production home again” hasn’t been smooth. Ford turned to Chinese battery giant CATL for a licensing agreement to develop the commercial processes used for LFP production. This sparked national criticism.
The project was initially rejected by the local governor over national security concerns. Meanwhile, federal lawmakers continue to question CATL’s involvement, even though the plant is wholly owned and operated by Ford.
Drake insists the partnership is a legal necessity due to patent ownership, not a strategic alignment with China. “Licensing this tech is simply the responsible way to deliver American jobs and affordable EVs,” she commented.
The future of EVs in America
Ford’s LFP ambitions carry a financial risk. The company could lose key tax credits tied to battery production if proposed legislation from President Donald Trump rolls back portions of the Inflation Reduction Act (IRA). Bill Ford, Executive Chairman of Ford, has warned that such moves could jeopardize both jobs and competitiveness.
Still, his company wants to move fast. Equipment is being installed in stages, and C-sample LFP cells—just shy of full production readiness—are already being produced off-site.
These prototypes will be used for design confirmation in Ford’s next-gen EVs, including vehicles from a secretive California-based ‘skunkworks’ team working on ultra-affordable models to rival Tesla and emerging Chinese brands.
“We are not just building a battery plant,” said Scott Davis, CEO of BlueOval Battery Michigan. “We are laying the foundation for the future of EVs in America.”
