In a strategic move to take Ford Accelerates command of electric vehicle technology, Ford announces plans to establish a battery development center in close proximity to Detroit by the conclusion of the upcoming year. The 200,000-square-foot facility, valued at $185 million, will be equipped for the comprehensive design, testing, and limited-scale manufacturing of battery cells and packs. This initiative marks a shift toward greater in-house production, as Ford aims to manage the entire battery manufacturing process, including the development of electronic controls.
With aspirations to eventually engage in large-scale global battery manufacturing independently, Ford is responding to the imperative need for sufficient battery supplies amid the growing transition away from internal combustion engines. The company, having recognized the swift evolution of the electric vehicle market, is positioning itself as a frontrunner in the industry’s progression.
Ford Accelerates
Hau Thai-Tang, Ford’s Chief Product and Operations Officer, emphasizes the accelerated development of electric vehicles, noting the market’s transition from early adopters to an early majority. Ford intends to eliminate uncertainty by increasing integration levels and foregoing the previous approach of relying solely on external suppliers.
This strategic decision aligns with the broader trend in the global auto industry, where manufacturers are racing to secure essential supplies, including precious metals crucial for battery production. Under the leadership of CEO Jim Farley, Ford is reversing its prior strategy of procuring technology and batteries from external suppliers, though the company remains open to potential collaborations with suppliers, universities, and startups.
The new battery center, named “Ford Ion Park,” will initially employ approximately 150 workers, with discussions ongoing about potential battery factory locations. This move is part of Ford’s ongoing discussions with the Biden administration regarding the transition to battery-powered vehicles, aligning with the administration’s climate change policies focused on expanding electric vehicle adoption.
This announcement follows Ford’s recent involvement in a trade secrets dispute between SK Innovation and LG Energy Solution. The company’s decision to accelerate its battery development plans may have been influenced by the global semiconductor shortage and the SK Innovation trade dispute, as automakers increasingly seek to control their battery production and secure raw material supplies directly from producers.
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