Ford has introduced lithium iron phosphate (LFP) batteries to its electric vehicles, starting with the Mustang Mach-E in Europe this year. The automaker is also investing $3.5 billion to build a battery plant in Michigan, called BlueOval Battery Park Michigan, which will open in 2026.
Ford said diversifying and localising its battery supply chain in the regions where it produces EVs will boost the availability and affordability of electric vehicles. Introducing LFP batteries will allow the company to produce more EVs, offer more choice to new customers and support its goal of an 8% EBIT margin for Model e by 2026.
LFP batteries are durable and tolerate more frequent and faster charging while using fewer high-cost materials. The lower-cost batteries, at scale, will help Ford reduce EV prices for customers. LFP batteries will power a variety of affordable, next-generation Ford EV passenger vehicles and trucks under development.