LFP batteries use fewer high-demand, high-priced materials and are extremely durable, tolerating more frequent and quicker charging. Starting with the Mustang Mach-E in Europe this year, Ford has added lithium iron phosphate batteries to its line of electric vehicles. The automaker is also spending $3.5 billion to construct Michigan’s BlueOval Battery Park Michigan, a battery plant that will start operating in 2026.
The availability and affordability of electric vehicles will increase, according to Ford, if its battery supply chain is localized and diversified in the areas where it manufactures EVs. LFP batteries will enable the company to produce more electric vehicles, provide new customers with more options, and support its objective of an 8% EBIT margin for the Model e by 2026.
LFP batteries use fewer expensive materials and are more resilient, tolerating more frequent and quicker charging. Ford will lower EV prices for customers as a result of the more affordable batteries, at scale. Several reasonably priced next-generation Ford EV trucks and cars will be powered by batteries.
