Ford reveals key details of 950-acre battery plant deal in Marshall

In announcing its official battery plant plans for Marshall, Ford Motor Co. touted its status Monday as the first automaker to commit to building both nickel cobalt manganese and lithium iron phosphate batteries in the U.S. as the 120-year-old automaker transitions from gasoline-powered vehicles to electric.

This $3.5 billion project in Michigan for lithium iron phosphate (LFP) batteries — called BlueOval Battery Park Michigan — will be a wholly owned subsidiary as part of the company’s $50 billion investment globally through 2026.

Initial production in Michigan on approximately 950 acres on the west side of the city is scheduled to begin in 2026 with 2,500 jobs to start, Ford said.

Ford confirmed it will collaborate with China-based Contemporary Amperex Technology Co. Ltd (CATL), the world’s largest battery company. The Chinese company, which is not a government-owned enterprise, operates 13 plants in Europe and Asia and provides batteries to companies, including Tesla and Honda.

“It’s really important to understand Ford controls the plant,” Lisa Drake, vice president of industrialization for the Model e unit at Ford, told reporters Monday amid some recent criticisms in Congress and elsewhere of deals with Chinese companies. Tensions are high between the two countries.

Under the arrangement, Ford will manufacture the battery cells using LFP battery cell knowledge and services provided by CATL, Ford said in its news release. Ford engineers will integrate these LFP battery cells into vehicles, including the Mustang Mach-E and F-150 Lightning.

Previously, Ford announced collaboration with SK On (previously SK Innovation) and LG Energy Solution, both based in South Korea, Ford said in its release.

$210M state incentive for Ford

Also Monday, the Michigan Economic Development Corp., was scheduled to approve a “critical industry program grant request” and zone designation for Ford in the amount of $210 million, and a loan for the Marshall Area Economic Development Alliance in the amount of $36 million to “purchase, improve and convey Marshall site parcels in and around Calhoun County.” In addition, Ford requested a 15-year reduction of certain property taxes.