Ford Invests $11.4B in New US EV & Battery Manufacturing Campuses

Ford and SK Innovation Invest $11.4 Billion in EV Production

A substantial investment of $11.4 billion is being undertaken jointly by Ford Motor Company and SK Innovation. This capital will facilitate the construction of two expansive campuses situated in Tennessee and Kentucky.

These facilities are designed for comprehensive electric vehicle production. They will encompass battery manufacturing, battery recycling processes, a dedicated supplier park, and a full vehicle assembly plant.

Ford's Significant Financial Commitment

Ford is contributing $7 billion to this project, marking the largest single manufacturing investment in the company’s 118-year history. This investment aligns with Ford’s pre-existing commitment to allocate $30 billion towards electric vehicles by the year 2025.

Furthermore, Ford will dedicate $525 million over the next five years to advanced job training initiatives throughout the United States, beginning in Texas.

Expanding EV Capabilities and Workforce Development

The training program will specifically focus on equipping auto technicians with the skills necessary to service Ford’s expanding range of electric and connected vehicles.

Ford’s “mega campus” developments represent the first new facilities constructed by the automaker in a generation. These campuses are intended to bolster its growing portfolio of electric vehicles.

Current and Future EV Models

This portfolio includes the Mustang Mach-E, the Ford E-Transit cargo van, and the highly anticipated F-150 Lightning pickup truck. The F-150 Lightning has already garnered over 150,000 pre-orders from prospective customers.

A key strategic objective is to reduce battery costs to a target of $80 per kilowatt-hour pack.

Industry Transition and Market Predictions

Lisa Drake, Ford’s chief operating officer in North America, emphasized the opportune timing of these investments. She stated that a critical mass for the transition to battery electric vehicles is rapidly approaching.

Evidence of this shift is already apparent within the automotive industry and is further substantiated by Ford’s recent product launches.

Ford anticipates that fully electric vehicles will constitute one-third of the full-size pickup segment by 2030.

Image Credits: Ford

Additional Investments and Production Increases

This announcement builds upon a series of prior investments by Ford. Notably, a $250 million investment and the creation of 450 new jobs will increase the production capacity of the F-150 Lightning to 80,000 all-electric trucks annually.

These funds and jobs will be distributed across the Rouge Electric Vehicle Center in Dearborn, Michigan, the Van Dyke Electric Powertrain Center, and the Rawsonville Components Plant.

Partnership with Redwood Materials for Battery Recycling

Less than a week prior, Ford announced a collaboration with Redwood Materials to establish a closed-loop system. This system will manage the recycling of production scrap and end-of-life electric vehicles.

The partnership will also ensure a consistent supply of raw battery materials for Ford.

Redwood Materials will establish a recycling facility on the Blue Oval City campus, located near Memphis, Tennessee, as part of this collaboration.

Securing a reliable supply of batteries and the necessary materials for their production has driven automotive manufacturers to forge partnerships with cell manufacturers and companies specializing in material recovery, such as Redwood Materials.

Ford's New Tennessee Manufacturing Hub

Upon completion, the $5.6 billion campus located in Stanton, Tennessee, is projected to be comparable in size and population to a modest village. Spanning 3,600 acres – almost 6 square miles – the facility is being engineered as a self-contained manufacturing ecosystem.

A key feature of this design is the ability to recycle production materials for use in creating new electric vehicles (EVs). This closed-loop system aims to minimize waste and maximize resource efficiency.

Key Components of the Campus

The expansive site will incorporate several crucial facilities. These include a battery production plant developed in collaboration with SK, a dedicated supplier park, and an assembly plant focused on the electric versions of the popular F-Series trucks.

The battery manufacturing component is expected to achieve a substantial 43 gigawatt hours of cell capacity. Ford has also committed to ensuring the assembly plant operates with carbon neutrality beginning with production in 2025.

Carbon neutrality will be achieved from the outset of operations at the assembly plant, scheduled to commence in 2025. This demonstrates Ford’s commitment to sustainable manufacturing practices.

• The campus covers 3,600 acres (nearly 6 square miles).
• Battery production capacity will reach 43 gigawatt hours.
• A closed-loop manufacturing system will be implemented.
• The facility will house a battery plant, supplier park, and assembly plant.

The partnership with SK is central to the battery production capabilities. The supplier park will streamline the delivery of components. The assembly plant will specifically focus on electric F-Series trucks.

Kentucky Campus Development

Ford Motor Company has announced plans for the construction of two battery manufacturing facilities on a 1,500-acre campus situated in Glendale, Kentucky. These facilities will be dedicated to the production of batteries for upcoming Ford and Lincoln electric vehicle models, slated for release later this decade.

The commencement of lithium-ion battery production is currently projected for the year 2025. This initiative represents a significant investment in the future of electric vehicle technology.

BlueOvalSK Battery Park Details

The entire battery campus, officially named BlueOvalSK Battery Park, is estimated to require an investment of approximately $5.8 billion. It is anticipated to generate around 5,000 jobs within the region.

Each of the two battery plants will have the capacity to manufacture up to 43 gigawatt hours (GWh) of batteries annually, resulting in a combined total output of 86 GWh.

Total Battery Production Capacity

When combined with a third battery cell plant already under development in Tennessee, the total battery production capacity will reach an impressive 129 GWh, as stated by Yoosuk Kim, Executive Vice President and Global Head of Marketing at SK.

This overall capacity is sufficient to power more than 1 million electric vehicles, according to Drake.

Ford's Battery Capacity Goals

Ford has previously outlined its global strategy for battery electric vehicles, aiming for a minimum of 240 GWh of battery cell capacity by the year 2030. This equates to the need for approximately ten large-scale battery plants.

Of this total, 140 GWh is earmarked for North American production, while the remaining capacity will be allocated to other key regions, including Europe and China.

Key Production Figures

• Total Investment: $5.8 billion
• Jobs Created: 5,000
• Annual Capacity (Kentucky): 86 GWh
• Total Capacity (with Tennessee): 129 GWh
• Vehicles Powered: Over 1 million