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Ford Authority

Michigan Requests $750 Million For Ford EV Battery Plant

The upcoming Ford BlueOval Battery Park Michigan is set to come online in 2026, but before the facility can become fully operational, a lot needs to happen. The future plant, which will produce lithium phosphate batteries for next-generation vehicles, is a key part of the Ford EV transition that the company anticipates will allow it to produce at least two million battery electric vehicles annually by 2026. In addition to funds from Ford itself, the state of Michigan has contributed resources to the site in Marshall as well, and per Crain’s Detroit Business, officials from the state are asking lawmakers to allocate additional funds to the project.

Ford BlueOval Battery Park Michigan Annoucement

The $750 million request, which requires approval from the state legislature, would come from the Strategic Outreach and Attraction Reserve Fund, and would allocate $330 million to improve roads around the plant. Another $250 million would prep the site for construction, a process that includes the installation of a storm water management system, plus grading, tree clearing, demolition, and remediation, among other things. Water services comprise a full $100 million of the request, and would allow state and local entities to boost wastewater treatment and overall supply capabilities. Additional funding would go towards more infrastructure projects and to help Ford with permit processing.

Ford BlueOval Battery Park Michigan Annoucement

As Ford Authority recently reported, the township of Marshall, Michigan recently approved land transfers for the upcoming Ford EV battery plant that will allow the city to further prep the site for the plant. Aside from state and local incentives, Ford will spend $3.5 billion to construct the plant, an endeavor that will create 2,500 jobs and provide batteries for about 400,000 vehicles per year starting in 2026. The plant is a big win for the state, as The Blue Oval initially planned to choose Mexico as the location for the facility until the Inflation Reduction Act offered substantial incentives for the company to build it within the United States.

We’ll have more on the latest Ford EV updates soon, so subscribe to Ford Authority for continuous Ford news coverage.

Ed owns a 1986 Ford Taurus LX, and he routinely daydreams about buying another one, a fantasy that may someday become a reality.

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Comments

  1. Michael J Genzale

    At my age I will probably not see the results of the attempts to bring back manufacturing to America.
    So much needs to be done to undo the damage to this sector of our economy that has been allowed to happen.

    Reply
  2. John

    4 billion to churn out 400k batteries. I guess that’s why they do cost 10 grand a piece.

    Reply
    1. RWFA

      John is another of the new K-street handles dispensing showers of brown FUD.

      But enough of that stink, let’s jump right into some context:

      Let’s look at Ford Investment (and for kicks plant wage) component of battery cost.

      (Operating, purchased component, material expenses and IP fees are ignored for this exercise.)

      Ford’s Marshall Investment: 3.5b$ / 30yr = 117m$/yr. (If 10 year accelerated schedule, then 351m$/yr.)

      Wages & Benefits (this plant only): 200k$/yr x 2,500 = 500m$/yr
      Annual cost: 617m$/yr. (851m$/yr if 10 yr amortization.)

      Battery production: 400k/yr

      Battery Unit cost: 617m$/yr / 400k/yr = 1,542 $/battery. (851m$/yr / 400k/yr = 2,127$/battery on 10 year amortization schedule).

      So, depending on amortization schedule, the per vehicle share of investment recovery due to Ford’s 3.5b$ investment is:
      – 30 year: 293$/unit
      – 10 year: 878$/unit

      Reply
  3. Mike says...

    Well…. and at the risk of winding up in your crosshairs RWFA…. there are valid reasons for criticism and concern… and I am a Ford first customer.
    There is precious little acknowledgment that the whole BEV shift is at best, a work in progress with questionable benefits. Outside of the ‘tree huggers and save the planet’ folks,… the dirty little secrets behind the BEV shift are studiously ignored and hidden from public discourse. I hope the new BEV’s succeed, however I am not prepared to ignore the possibility this may well be the biggest ‘con ever’ perpetrated. Like your stuff.. most of the time… just do not think you have all the answers or a balanced argument somethimes.

    Reply
    1. RWFA

      As for the idea that you may be arguing in either good faith or without a tinfoil hat, you pretty much set the ceiling for such expectations on the floor with the body of your argument.

      “Biggest con ever”. Hahahaha.

      Reply
  4. Devon

    Our state is also drafting an EV tax. The tax on Diesel is being lowered at the same time.

    Reply
    1. RWFA

      LoL our old K-street friend Devon playing the shifting tax angle.

      Note how it’s balanced to make Diesel last ok more attractive?

      As transportation sector demand for its products wanes, Big Oil will eventually enter into cartel agreements or price wars.

      It’s not that far yet so they are playing games around the rhetorical margins to try and slow down BEV sales without having to resort up price cuts to take steam out of customer ICE to BEV conversions.

      Reply

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