Ford will introduce lithium iron phosphate (LFP) batteries to its Mustang Mach-E 1 range in Europe this year as part of its commitment to make electric cars more affordable and accessible to customers.

Ford also announced that it is investing $3.5 billion to build the first LFP battery plant in the U.S. – dubbed BlueOval Battery Park Michigan – to be operational in 2026.

Diversifying and localizing Ford’s battery supply chain in the regions where it builds electric cars will improve availability and affordability for customers while boosting consumer demand. Ford has set a global target of 600,000 electric vehicles annually by the end of this year and 2 million EVs by the end of 2026 under the Ford+ plan.

As Ford rapidly scales up EV production, the introduction of LFP batteries enables the company to build more electric vehicles and offer more options to new EV customers, while supporting its target of an 8% EBIT margin for the business Model e unit until 2026.

“We’re committed to leading the electric vehicle revolution, and that means investing in the technology and jobs that will keep us at the forefront of this global transformation in our industry,” said Bill Ford, Ford’s executive chairman.

LFP battery chemistry will benefit Ford customers

Offering batteries with LFP chemistry as an alternative – beyond nickel-cobalt-manganese (NCM) batteries – allows Ford customers to choose an electric vehicle with unique battery performance characteristics that best suits their needs.

LFP batteries are very durable and can withstand more frequent and faster charging while using less expensive and high-demand materials. Due to the lower cost, on a large scale this type of battery will help Ford to limit or even lower the prices of EVs for the benefit of customers. The LFP batteries will power a variety of Ford’s affordable next-generation electric passenger and pick-up vehicles under development.

“Ford’s range of electric vehicles has created huge demand. We are delivering on our commitments as we ramp up production of LFP and NCM batteries while thousands – and soon millions – of customers will begin to enjoy the benefits of Ford’s EVs with advanced and durable battery technologies that are becoming more affordable over time,” said Jim Farley , chairman and CEO of Ford.

Even before the new battery plant opens in Marshall, Michigan, USA, Ford will use LFP batteries in the Mustang Mach-E this year and the F-150 Lightning in 2024 in key global markets, with the aim of reducing waiting times for customers.

LFP battery technology also helps reduce reliance on critical minerals such as nickel and cobalt, and aligns with Ford’s effort to create an EV supply chain that meets its sustainability and human rights commitments.

Ford has committed to investing over $50 billion in electric vehicles globally by 2026 and has also already committed to achieving carbon neutrality globally across all its vehicles, operations and supply chain by 2050. The company aims to zero emissions for all vehicle sales in Europe and carbon neutrality across its European footprint of facilities, logistics and suppliers by 2035.