The Ford Mustang Mach-E has undergone quite a few changes since it originally launched for the 2021 model year, which is to be expected in the world of all-electric vehicles. After all, battery technology is developing at a rapid pace, and costs continue to come down, which is a good thing both for automakers and consumers alike. Now, it seems as if the Ford Mustang Mach-E is set to undergo another big change, at least, pertaining to where some of its battery packs are built.
As part of a broader strategy shift announced this morning, The Blue Oval revealed that it and LG Energy Solutions plan to move some Ford Mustang Mach-E battery production from Poland to Holland, Michigan, which is notable for a few reasons. Current, LG builds the NCM battery for extended range Mach-E models, while CATL supplies the crossover’s standard range lithium-iron phosphate (LFP) battery park that’s assembled in China.
Ford is executing this shift for one very good reason – it will make those versions of the Ford Mustang Mach-E eligible for the Inflation Reduction Act of 2022’s federal clean energy tax credits. As Ford Authority previously reported, the Mach-E lost its eligibility for those credits at the start of 2024, due to sourcing requirements pertaining to batteries and raw materials. “An affordable electric vehicle starts with an affordable battery,” said Ford CEO Jim Farley. “If you are not competitive on battery cost, you are not competitive.”
Ford just made the switch to an LFP battery for the 2023 model year for its standard range models in an effort to drive down costs, and will soon build those same types of batteries at the under-construction BlueOval Battery Park Michigan plant using technology licensed from CATL. In 2024, the Mach-E also received new e-motors developed in-house by FoMoCo engineers that improve range across the lineup, too.
We’ll have more on the Mach-E soon, so be sure and subscribe to Ford Authority for more Mustang Mach-E news and continuous Ford news coverage.
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