Ford will invest $3.5 billion to build what it says is the country’s first automaker-backed lithium iron phosphate (LFP) battery plant, offering customers a second battery technology within its EV lineup. The facility, called BlueOval Battery Park Michigan, will initially employ 2,500 people when production of LFP batteries begins in 2026. Ford will have the option to further grow its battery capacity at the Marshall, Mich., plant, which will be part of a wholly owned Ford subsidiary and add approximately 35 gigawatt hours (GWh) per year of LFP battery capacity in the U.S.

With this $3.5 billion investment, Ford and its battery tech collaborators have announced $17.6 billion in investments in EV and battery production in the United States since 2019. In the next three years, these investments will lead to more than 18,000 direct jobs in Michigan, Kentucky, Tennessee, Ohio and Missouri and more than 100,000 indirect jobs, according to the methodology from a 2020 independent study.

Offering LFP as a second battery chemistry – in addition to nickel cobalt manganese (NCM) – allows Ford customers to choose an EV with battery performance characteristics most aligned with their needs. LFP batteries are very durable and tolerate more frequent and faster charging while using fewer high-demand, high-cost materials. LFP battery technology also helps reduce reliance on critical minerals such as nickel and cobalt.