Ford is investing heavily in batteries for its future vehicles. The Blue Oval will be centralizing its research and development for electric vehicle batteries in south-east Michigan. The plan will include the opening of a $185,000,000 “learning lab” that will develop, test, and make battery cells and cell arrays.
Under the Biden administration in the United States, the notion of localized manufacturing and control of the supply chain is ever-present as global chip shortages and overseas supply chain woes continue to affect the automotive industry. The COVID-19 pandemic also contributed heavily to the speed and production capacities of many manufacturing and supply chain companies.
Prior to this arrangement, Ford was in talks with South Korean battery manufacturers, LG Chem and SK Innovation (SKI). The plan was to buy electric vehicle batteries from these companies to build its cars. However, SKI got into a dispute involving it and LG Chem, which eventually led to a 10-year ban for importing goods into the United States for 10 years. The ban was subsequently averted in April and reached a settlement.
On Ford’s side, 150 experts will be hard at work in the Ford Ion Park to develop and manufacture Ford’s EV batteries moving forward. As electrification continues to rise in the world, Ford is taking big steps to not only provide a steady supply of batteries for its upcoming EVs but to also provide a strong job climate for the US market. That being said, once the Ion Park is fully operational, we can expect that the Ford Mustang Mach-e and the other planned electric vehicles in the brand’s timeline will come with in-house cells from Ford themselves.