Summary: Ford has recently announced that it plans to build a $3.5bn EV battery factory in Michigan USA, one of a swath of recent announcements across Asia, the US and Europe. The new factory will use LFP technology, licensed from Chinese company CATL. Market leader Tesla already uses the LFP technology in some of its range and its use is widespread in China.
Why this is important: Green technology supply chains have become a bigger issue, as companies and governments start to worry about the dominance of China, and what it might mean if the relationship gets worse. But its not that simple, its possible to build at home, using technology provided by an apparent competitor.
The big theme: The demand for EV’s is surging, despite input costs pressures slowing the rate of battery cost declines. This rapid growth is putting pressure on all parts of the EV supply chain, from raw materials through battery manufacture, to charging infrastructure. As a result, technological change is also accelerating. The “right” technology five years ago might no longer be the best choice now or in the future. There is no single perfect battery technology. Companies and investors need to be nimble and flexible.
Summary of a story from electrek
Ford has announced a major move into LFP batteries to power their electric vehicle range. The company will use technology licensed from Chinese company CATL. The new plant, which is due to start production in 2026, will employ c. 2,500 workers.
They are targeting 35GWh per year of output, enough to power c. 20% of their expected 2m pa EV output (2026). The batteries, at c. 87kWh, will likely be slightly smaller than the power plant for the F-150 Lightning, and slightly bigger than the Mach-E standard range.