BEIJING, February 14 (TMTPOST)— Contemporary Amperex Technology Co. Ltd. (CATL), the largest power battery manufacturer in China as well as the world, is officially confirmed about its first major involvement in battery production in U.S.

Source: Visual China

Ford Motor Company announced to invest $3.5 billion to build a lithium iron phosphate cells (LFP) factory in Michigan. This is the largest investment for a U.S. automaker to tap into the cheaper battery cell chemistry as LFP costs less than the nickel-and-cobalt combination widely used in North America and Europe. The factory, located in Marshall, a town about 100 miles west of Detroit, is expected to create about 2,500 jobs and open in 2026, with annual battery capacity to empower 400,000 electric vehicles (EVs).

Calling the plant a wholly-owned subsidiary, Ford clarified CATL will serve as its partner that provides technology and expertise. Ford executives said all the operations of the plant will be under control of the company and CALT employees will be stationed there. CATL later confirmed it has accepted invitation for cooperation from Ford. The Chinese EV battery giant would license CTP (cell to pack) technology to Ford and its workers shall help the new plant from construction to operation.

The announcement confirmed news last Friday about finalized site of a new battery plant backed by Ford and CATL. Such partnership can help Ford achieve its goal to make 2 million EVs a year by the end of 2026. It is also CATL’s major breakthrough in a months-long pursuit for establishing a factory in the United States amid elevated uncertainty of US-China relations.

Ford announced in last July about initiatives for sourcing battery capacity and raw materials to help reach its annual EV production target, including partnership with CATL. CATL has said it would provide full LFP battery packs for the all-electric SUV Mustang Mach-E models for North America this year as well as the all-electric truck model F-150 Lightnings in early 2024. This is the first time for Ford to add LFP cell chemistry to its portfolio.