According to Reuters, Ford Motor Company plans to announce a $3.5 billion lithium iron phosphate battery plant in Michigan as soon as Monday.
According to sources, Ford will own and operate the plant, with Chinese battery company China’s Contemporary Amperex Technology Co Ltd (CATL) serving as a technology partner to help develop the batteries. Ford has refused to confirm the plans.
The plant is expected to be built near Marshall, Michigan, and will eventually employ at least 2,500 people. A 1,900-acre Marshall ‘megasite’ about 100 miles west of Detroit has been marketed by the state.
CATL, which declined to comment, has signed technology licencing agreements with Hyundai MOBIS in 2021 and Arun Plus in 2022 as a means of generating consistent cash without taking on large risks or investing.
The $430 billion Inflation Reduction Act (IRA) legislation passed by Congress in August restructured EV tax credits and eventually barred credits if any EV battery components were manufactured or assembled by a ‘foreign entity of concern’ or if batteries contained critical minerals extracted, processed, or recycled by a foreign entity of concern.
The rules were designed to wean the US off the Chinese battery supply chain. By owning the plant outright, Ford may be able to ensure that the batteries produced qualify for tax credits.
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