Ford and LG shift production of Mustang Mach-E lifepo4 battery

According to foreign media reports, under a new agreement signed by Ford and LG, the two companies will move battery production of the Ford Electric Horse Mustang Mach-E electric vehicle from Poland to its factory in Michigan in 2025. The move is of course related to the Inflation Reduction Act (IRA) and the tax credit. "In order to take advantage of favorable market conditions," the new agreement will see battery production for the Ford Mustang Mach-E move to the United States, thereby enjoying various U.S. incentives through those batteries. In Europe, LG plans to take advantage of local incentives to supply 109 GWh of lifepo4 battery to Ford for commercial electric vehicles starting in 2026.

David Kim, CEO of LG New Energy, said: "These agreements are a testament to our experience and expertise in delivering innovative battery technologies for commercial vehicles that are designed to cope with extreme usage environments. Leveraging our local production capacity, we will secure a leading position in the European market and offer our customers high value through advanced battery technology, effectively meeting their diverse needs." Ford isn't the only automaker hoping to get a new clean vehicle tax credit of up to $7,500 for pure electric vehicles and plug-in hybrids by building a U.S. battery supply chain. LG New Energy also announced that it will invest $3 billion in its Michigan lifepo4 battery facility as part of a separate deal to supply lithium to Toyota for use in future electric vehicle batteries manufactured in the United States. In addition to the LG deal, Ford has an agreement with SK On to produce batteries for the new electric E-Transit commercial vehicle and F-150 Lightning electric pickup truck in Kentucky starting in mid-2025.