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Ford EV Battery Supplier Scouting Locations In Mexico For Future Plant

Last December, Ford China announced that it would begin sourcing EV batteries from CATL – the world’s largest producer of those items – for its vehicles in that particular market. With The Blue Oval rapidly expanding its EV lineup in the coming years, it intends to secure batteries from a variety of places, including third-party companies and via its own joint venture with SK On dubbed BlueOvalSK, a list that could also include CATL for North American vehicles as well. As Ford Authority reported in May, that company has also been scouting locations in the U.S. where it could build multiple new plants, and now, its geographical search has been expanded to Mexico, according to Bloomberg.

2022 Ford F-150 Lightning

CATL is reportedly considering at least two different locations in Mexico – Ciudad Juarez in Chihuahua and Saltillo in Coxhuila – where it can build Ford EV batteries, as well as units for Tesla, too. Both of those locations are near the Texas border, making them convenient for export to the U.S., though the Ford Mustang Mach-E is also produced south of the border. CATL could reportedly invest as much as $5 billion in a future Mexican plant with a total capacity of 80 gigawatt-hours.

However, sources say that CATL is also considering building a plant in both Mexico and the U.S., though no final decisions have been made as of yet in terms of where these future plants may be located, nor how much the company plans to invest in them. CATL’s efforts to add more facilities in America have been somewhat thwarted by rising tensions between the U.S. and China in recent years, though a number of its rivals – including Samsung SDI, Panasonic, and LG Energy – are already in the process of doing so.

Regardless, if it moves forward with plans to build one or more plants in Mexico. CATL could manufacture battery cells there and then ship them to Kentucky, where battery packs would then be assembled for Tesla and Ford EV models, as the company purchased a facility there back in 2020.

We’ll have more on CATL’s expansion plans soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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Comments

  1. Bob

    Why is Ford not controlling their battery future? Seems a bit short sighted. Worse yet, they are working with Chinese. Why can Chinese build a battery plant in a year while the big three take years to make anything?

    Reply
    1. Wayne

      Can you say rules and epa and local idiots. Throw in the quack environmentalist with their BS and that is your answer. I would like to see everything made here in USA. I would gladly pay more than Chinese throw away crap

      Reply

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