Ford Motors is set to hold a press conference today to announce updates on its electric vehicle (EV) business. According to reports, the automaker is expected to reveal a new factory in Michigan, which will be built in partnership with Contemporary Amperex Technology Limited (CATL).
The factory will produce iron phosphate battery cells, which are considered to be cheaper and safer than traditional EV batteries.
This announcement follows rumors of a potential $3.5 billion deal between Ford and CATL to build an iron phosphate battery plant in Michigan. The new partnership will secure more iron phosphate battery cells for Ford, which has already secured 60 GWh of battery supply for the production of 600,000 electric vehicles.
Iron phosphate batteries are a popular choice for shorter-range EVs, with half of Tesla’s vehicles produced last year being equipped with this type of battery cell. CATL dominates the production of iron phosphate batteries and is Tesla’s supplier of these cells.
Ford’s deal with CATL will bring large-scale iron phosphate battery manufacturing to the US, which could be a significant development for the North American EV market. The automaker has already announced plans to introduce versions of the Mustang Mach-E and F150 Lightning with iron phosphate battery cells