US-headquartered global car manufacturer Ford has announced that it will invest $11.4 billion to produce electric vehicles for the US market.
The investment will allow Ford to build four new manufacturing facilities for electric vehicles and batteries, and create 11,000 jobs by 2025.
The automaker will build its biggest production facility in Tennessee and two battery packs in Kentucky. The projects will be implemented in partnership with the South Korean firm SK Innovation.
Ford will invest $7 billion as part of its $30 billion overall smart mobility plan whilst SK Innovation will invest the remaining $4.4 billion.
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“This investment supports the company’s longer-term goal to create a sustainable American manufacturing ecosystem and to accelerate its progress towards achieving carbon neutrality, backed by science-based targets in line with the Paris Climate Agreement,” according to a statement issued by Ford. The company has a target to achieve carbon neutrality across its global operations by 2050.
Jim Farley, Ford’s president, added: “This is our moment – our biggest investment ever – to help build a better future for America.
“We are moving now to deliver breakthrough electric vehicles for the many rather than the few.”
The investment will enable Ford to scale up its manufacturing of zero-emission cars and pickups. The company has set a goal to have 50% of its vehicles electric by 2030. The development will also align the automaker with a target set by the US president to have electric vehicles account for 50% of all vehicle sales by 2030.
The announcement follows Ford increasing investments in EV production at its Texas and Michigan manufacturing facilities. The new investment plan will enable Ford to catch up with market leaders Tesla, according to the company.
The announcement also comes at a time the lack of infrastructure has been identified as a key barrier to accelerate the production and usage of electric vehicles. However, the Biden infrastructure is expected to address this with its infrastructure upgrade bill and plan which includes the installation of 500,000 chargers for electric vehicles by 2030.
Today, Ford has North America’s ‘largest’ public charging network, with more than 63,000 charging plugs.
Other efforts being implemented by Ford to reduce the carbon footprint of the transport industry through increased adoption of electric vehicles include:
- Investing $500 million in electric vehicle startup Rivian.
- Partnering with Volkswagen on its Modular Electric Drive architecture to develop an electric vehicle for the European market beginning in 2023.
- The establishment of the Ford Ion Park global battery center in southeast Michigan to accelerate research and development of battery and battery cell technology.
- Investments in in Solid Power, a producer of all-solid-state batteries for electric vehicles.