• Tech Tech

Ford’s plan to build new, ultra-efficient batteries in the US means EVs will be getting much, much cheaper: ‘This is a big deal’

The announcement comes just after Ford won the 2023 Truck of the Year for its electric truck.

Lithium iron phosphate batteries

Photo Credit: iStock

Last month, Ford announced that it will build a factory in Michigan to produce affordable lithium iron phosphate (LFP) batteries for its electric vehicles, reports the MIT Technology Review.

Most lithium batteries use additional metals, like nickel and cobalt, to help them store energy. But most of these metals are rare and expensive. LFP batteries use ordinary iron instead — a much more affordable alternative. According to MIT, batteries of this type are about 20% cheaper on average. 

Iron-heavy lithium batteries have been around for a long time, MIT says. But they have been previously overlooked as an option for EVs because batteries made with the metal could not store as much energy as other lithium batteries of the same size. Companies were focused on achieving a greater range for their vehicles, so they favored the smaller, lighter batteries.

However, as demand for EVs increases, the cost and scarcity behind procuring rare metals is becoming a bigger problem. Cobalt is especially problematic because mining it is dangerous, as the New Yorker reports.

EV manufacturers like Tesla have switched to using LFP batteries for some models, such as the Model 3, and MIT says that these batteries have already been popular in China for a few years. Ford has announced it will use LFP batteries in the 2023 Mach-E starting in the 2023 and 2024 F-150 Lightning models, but for now, it will need to import them, as there are currently no LFP manufacturers in the U.S. However, MIT reports that several are in the works in addition to Ford’s factory.

Ford’s new facility is due to open in 2026, MIT says. It represents a $3.5 billion investment in the EV market and will be the first factory of its type in the U.S. “This is a big deal,” said Michigan governor Gretchen Whitmer at the press conference announcing the plan.

This announcement comes just after Ford won the 2023 Truck of the Year for its electric truck, the Ford Lightning.

Join our free newsletter for weekly updates on the coolest innovations improving our lives and saving our planet.

Cool Divider