Ford Motor Company announced on Monday its plans to make the largest investment ever in the U.S. by an auto manufacturer. It will be a $11,4 billion investment, made along with its partner SK Innovation. Such an amount would fund the construction of two new massive electric vehicle plants in the U.S.
Firstly, the mega-sites will be located in Tennessee and Kentucky, respectively. The development of the plants would also create around 11,000 new jobs. In those plants, the company will manufacture next-generation electric trucks and top-notch batteries to power future electric Ford and Lincoln fleets.
Secondly, the announcement comes amid strong demand for the all-new Ford F-150 Lightning truck, E-Transit, and Mustang Mach-E electric vehicles. But it is also aligned with Ford’s recent announcement to expand production capacity and add jobs at the Ford Rouge Electric Vehicle Center in Dearborn, Michigan.
It is also part of the company’s strategy to create a sustainable American manufacturing ecosystem, and to accelerate its progress towards achieving carbon neutrality. In fact, Ford expects 40% to 50% of its global vehicle volume to be fully electric by 2030.
On the one hand, the Tennessee plant will be a $5,6 billion mega campus located in Stanton. It is called Blue Oval City and will create around 6000 new jobs. In addition, it is going to be a vertically integrated ecosystem for Ford to assemble and expand its electric F-Series. The campus will also include a BlueOvalSK battery plant.
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Ford, moving forward in sustainability and carbon neutrality
On the other hand, the Kentucky plant will be a $5,8 billion complex, built and developed in conjunction with SK Innovation. It will be called BlueOvalSK Battery Park and will crate 5000 jobs. There, the companies will develop and assemble batteries that will power next-generation electric Ford and Lincoln vehicles.
Moreover, Ford will invest $7 billion of the total, while SK Innovation will put the remainder. However, the funding will happen through BlueOvalSK, a new joint venture to be formed by Ford and SK Innovation. Nevertheless, the JV is still subject to regulatory approvals and definitive agreements.
Furthermore, about the relevance of the investment for the company, Executive Chair, Bill Ford, said. “With this investment and a spirit of innovation, we can achieve goals once thought mutually exclusive – protect our planet, build great electric vehicles Americans will love and contribute to our nation’s prosperity.”
Finally, Jim Farley, Ford president and CEO commented. “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.”
