Ford Announces $11.4B Investment To Accelerate EV Rollout31
Ford Motor Company today announced it will invest $11.4 billion to construct two new manufacturing campuses in Tennessee and Kentucky, which will build the next generation of electric F-Series trucks and batteries for future Ford and Lincoln EV offerings.
The Tennesse plant, dubbed Blue Oval City, will sit on a six square-mile site in Stanton, Tennessee and will employ 6,000 people. Ford says the 3,600 square-foot plant will include a vehicle assembly site, a battery production plant and a supplier park, creating cost efficiencies by reducing shipping times for batteries and other components.
“Blue Oval City will be among the largest auto manufacturing campuses in U.S. history.,” Ford said in a statement released Tuesday. “Like the iconic Rouge complex in Michigan did a century earlier, Blue Oval City will usher in a new era for American manufacturing.”
The Kentucky plant, meanwhile, will be a dedicated battery manufacturing complex operated in partnership with Ford’s battery partner, SK Innovation. This site will be called the BlueOvalSK Battery Park and will include two separate battery manufacturing sites, which will supply battery packs for next-generation Ford and Lincoln EVs. The BlueOvalSK Battery Park will employ around 5,000 people once it reaches full capacity by mid-decade.
Ford says the $11.4 billion investment in the two new plants will be made via BlueOvalSK, a new joint venture partnership formed by Ford and SK Innovation. In a statement, Ford CEO Jim Farley pointed out the figure represents the automaker’s largest production plant investment ever.
“This is our moment – our biggest investment ever – to help build a better future for America,” Farley said. “We are moving now to deliver breakthrough electric vehicles for the many rather than the few. It’s about creating good jobs that support American families, an ultra-efficient, carbon-neutral manufacturing system, and a growing business that delivers value for communities, dealers and shareholders.”
This strategy is evocative of GM’s own strategy for future electric vehicles. The automaker is currently setting up two large battery plants in Ohio and Tennessee through its Ultium Cells joint venture partnership with LG Energy Solution. The automaker’s Factory Zero plant in Michigan is also undergoing a major renovation to produce future EVs, including the GMC Hummer EV Pickup and Chevy Silverado EV.
Ford says production of its next-generation electric vehicles and advanced lithium-ion batteries at its two new plants will begin in 2025.
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all Im gunna say is, there are a LOT of haters of Mary Barra on here, but you do realize Ford basically waits 6 months and just does what GM trailblazed… right? ok good.
$2BN in recall costs associated with the bolt?
Blind leading the blind…..
You mean like they waited 6 months for the Lightning pickup, where the hell is gm’s electric truck. gm brags, Ford actually does it.
The Lightning is a placeholder compromised ICE truck converted to EV with non-competitive range. Which is why with this announcement Ford mentioned their ground-up EV platform for the next generation Lightning is coming only a few years later in 2025. Why come out with the Lightning now? Because they realized they were behind and needed something to stay relevant and buy some time to bring an actually competitive EV pickup to the market.
GM probably could have done the same with the ICE Silverado. But why when their new EV platform is ready now? We will see the Silverado EV in about a year with over 400 miles range.
I’m pretty sure $11.4 billion deals take longer than 6 months to start and finish. Most likely Ford was well into the process of finalizing these plans when GM made their announcements.
GM has been building their Lordstown, OH plant for about 2 years now.
1 year and 4 months to be exact… You have a generous round up…
Fords Marketing department is good… They basically just stole a big portion of the thunder from GM’s upcoming Investor conference. Same thing they did with the F150 lightning unveil. GM needs marketing help badly, as GM has a better story to tell, but maybe forgot how to read? Have to tip the cap to Farley, he is doing great at winning investors confidence, while GM is slow playing all their actions.
Agreed, but GM’s stock is doing a lot better. Maybe there’s a reason Ford has to jump first. By showing the F150 Lighting, Ford had to show their hand while GM has only shown the Silverado’s logo. Given how far the Lyriq, Brightdrop, and Hummers are you have to imagine the Silverado program is pretty advanced.
What? Are you on Dope? Ford has massively out performed GM stock over the last 18 months, and Ford has a higher P/E ration which says investors have more faith in future profits from Ford. GM P/E ratio only 6, meaning investors are worried…
Fotd seems to be actually doing something while GM issues press releases.
Really? GM has 4 assembly plants converting to EV currently, and 2 new battery plants that are under construction (one nearly complete). Technically Ford is behind GM by a lot, however Ford has done great job of telling their story, even though they are behind… Ford had pretty renderings, but not much action on the ground.
Ford has showed us the Lightning and even let auto journalists make videos about them, GM has showed us the wheel of its new Silverado electric vehicle.
This lightning will not even be built at this new plant, this is for ford’s next gen EV pickups GM’s Silverado EV is already on the next gen platform, and prototypes are testing today. GM showed the Hummer first, which is the first truck off the next gen platform. Hummer has also started production earlier this month, Ford Lighting still 6 months away from Job 1 date.
Ford’s announcement is great, but its all future plans, GM is already doing the work, but has not done as good of a job telling their story.
Correction needed – 3,600 square foot plant. ???
They hire a lot of VERY small people.
ford hasn’t even started construction on their $2BN money pit construction yet. what a bunch of losers!!!
I agree any company I agree government motors should of been made to go under in 2008 just like the people and the senate wanted. They should not of been allowed to survive because a president signed an EO to save them, you are right they are a bunch of losers
I call bull! 11 billion over what? 2 Decades? Plenty of time for them to cancel 10 of that billion if nobody ends up ordering many Ford lightings. The Mach-e is already tapering off in sales with most sales being investors and execs. This really should be illegal. What their doing is announcing plans that will never be completed hoping to solicit stock gains. What if Toyota announced their new tundra runs on unicorn farts and got 100 mpg to boost stocks? Wouldn’t that be False advertising?
Ford is supplying 7 billion. SK Innovation is supplying the rest. Some of that money is going into a massive solar panel farm. I hope they get a discount for buying in bulk.
I know several Mach E buyers, all seem happy, and are in no way connected to Ford…
I bet they included the cost of developing the product with that figure as well.
While Ford fools most with the Lighting they are working hard on a new specific EV truck that GM is now just finishing.
Ford has been behind. They focused on a CUV and a somewhat converted Gas truck while GM has an entire line of models coming.
In the past GM has had a history of trying to be first like Ford is trying but it often back fired. The cylinder drop 8-6-4 failed. The early Turbochargers failed, a number of things failed often as the tech while leading was used before it was ready.
GM is working to get these models right and priced lower so they will sell.
Watch as GM drops a specific built EV truck and then Ford a year or two later does the same thing GM did.
This deal to go EV is not a race to be first but a deal to get it right and prices down.
Any company that fails in the conversion will be at risk and no one immune.
GM marketing department sucks… Ford is eating GM’s lunch in public perception, even though behind the scenes GM is way ahead..
GM is still ahead of Ford with the transition to EVs, Ford is just now catching up by copying GM. Any guesses on where the two additional battery plants will be located? My guess is Michigan & Texas.
To each their own, GM looks to sell battery tech to other manufacturers unlike what Tesla is doing with Honda being their 1st customer, Toyota is doing solid state and Ford seems to be buying from a supplier, Ford did drop the ball after ’14 on hybrids and EVs..
As long as everyone’s in the attack mode today on each other, how about the Fords take the Lions with them to Tennessee to their new found paradise.
10 or 15 years from now and the air quality is no better a lot of people are going to have egg on their face.
Without a massive buildup of infrastructure and universal fast charging stations an EV is just a city vehicle. How many people will give up an ICE vehicle to travel out of state, cross country, low population areas, etc? Are these new EV’s going to have a real 500+ mile range at real driving speeds and conditions, such as low temperatures, weather, and loaded conditions? (as in 2-4 adults, luggage, a small trailer?) If you build it they will come, but how long is it going to take to get there?
3600 sq ft? or acres?