Ford will introduce lithium iron phosphate (LFP) batteries to the Mustang Mach-E lineup in Europe this year.
Ford is investing $3.5 billion to build the first automaker-backed LFP battery plant in the U.S. – called BlueOval Battery Park Michigan – which will open in 2026, the company said. Ford is working to deliver 600,000 EVs per year globally by the end of this year and 2 million globally by the end of 2026 as part of its Ford+ plan.
As the company rapidly scales EV production, introducing LFP batteries allows Ford to produce more EVs and offer more choices to new EV customers while helping support the company’s goal of an 8% EBIT margin for Model e by 2026.
“We are committed to leading the electric vehicle revolution, and that means investing in the technology and jobs that will keep us on the cutting edge of this global transformation in our industry,” said Bill Ford, Ford executive chair.
LFP batteries are durable and tolerate more frequent and faster charging while using fewer high-demand, high-cost materials, the company said. This lower-cost battery will help Ford contain or even further reduce EV prices for customers.
“We’re delivering on our commitments as we scale LFP and NCM batteries and thousands, and soon millions, of customers will begin to reap the benefits of Ford EVs with cutting-edge, durable battery technologies that are growing more affordable over time,” said Jim Farley, Ford president and CEO.
Ford has committed to invest over $50 billion in EVs globally through 2026 and is also already committed to achieving carbon neutrality globally across its vehicles, operations and supply chain by 2050, the company said. Ford is targeting zero emissions for all vehicle sales in Europe and carbon neutrality across its European footprint of facilities, logistics and suppliers by 2035.