It is reported that Ford and LG have signed a new agreement to shift the battery production of the Ford Mustang Mach-E electric vehicle from Poland to its factory in Michigan by 2025. This move is estimated to be related to the Inflation Reduction Act (IRA) and associated tax credits.
“To take advantage of favorable market conditions,” the new agreement will enable battery production for the Mustang Mach-E to take place in the US, allowing the company to benefit from various incentives available for these batteries. In Europe, LG plans to leverage local incentives to supply Ford with 109 GWh of batteries for its commercial electric vehicles starting in 2026.
David Kim, CEO of LG Energy Solution, stated: “These agreements demonstrate our expertise and experience in providing innovative battery technologies for commercial vehicles, designed to handle extreme operating conditions. By utilizing our local production capabilities, we will ensure our leading position in the European market and provide high-value solutions to meet our customers’ diverse needs through advanced battery technology.”
Ford is not the only automaker looking to establish a US battery supply chain to qualify for up to $7,500 in new clean vehicle tax credits for fully electric and plug-in hybrid vehicles. LG Energy Solution also announced a $3 billion investment in its Michigan battery facility as part of a separate agreement to supply lithium to Toyota, which will be used in EV batteries manufactured in the US in the future.
In addition to its partnership with LG, Ford has also reached an agreement with SK On to begin battery production in Kentucky for the new electric version of the Transit commercial vehicle (E-Transit) and the F-150 Lightning electric pickup starting in mid-2025.
Source: WeChat Official Account—起点锂电
Disclaimer: The content provided above is intended solely for educational and reference purposes. The original author retains the copyright to the articles, and their reproduction is aimed at facilitating learning and knowledge-sharing. If there are any concerns regarding copyright infringement, please contact us for immediate removal. We value the intellectual property rights of the original creator and encourage readers to engage with the original work.
