Ford Partnership with Chinese Battery Company

Ford announced (February 13) that it will invest $3.5 billion to build a battery manufacturing facility in Marshall, Michigan. Ford will undertake the project and its operation in partnership with a Chinese company – Contemporary Amperex Technology Co.

The facility will make both nickel cobalt manganese (NCM) and lithium iron phosphate (LFP) batteries. Initial production is estimated for 2026, with initial annual output of enough batteries for 400K electric vehicles.

The new facility will be designated as "BlueOval Battery Park Michigan." In 2021, the company announced (September) it will build new battery facilities in both Tennessee and Kentucky in a production partnership with SK Innovation. Both facilities are expected to be operational in the 2025/2026 timeframe.

New battery manufacturing capacity is expected to help the company significantly increase its EV production levels. The company is seeking to increase its annual production from about 600K vehicles by the end of this year to 2 million vehicles by the end of 2026.

(updated: 2-14-23)

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Battery Manufacturing Loan for GM

The Energy Department provided a conditional commitment for a $2 billion loan to Redwood Materials, to produce battery materials from both new and recycled sources.

Redwood says it will use the funding for the phased construction and expansion of the company’s first battery materials campus in Nevada, which already has begun production of the copper (anode) elements for battery production. The company says it will now focus on preparing to manufacture cathode elements (e.g.,  lithium, nickel, and cobalt). Redwood also recently announced (December) plans for another battery manufacturing campus in Charleston, South Carolina.

The loan follows the closing (December 12) of a $2.5 billion Federal loan to Ultium Cells LLC, the company supporting the development and manufacturing of the Ultimum electric vehicle battery platform. 

Ultimum Cells represents a joint venture between General Motors (GM) and LG Energy with new lithium-ion battery cell manufacturing facilities in Ohio, Tennessee, and Michigan. The venture will produce large format, pouch-type cells that can be arranged in different combinations depending on vehicle type.

(updated: 2-11-23)

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Private Sector U.S. Battery Production Capacity

Honda announced (October 11) that in a joint venture with LG Energy Solution, it will build a new battery production facility in Fayette County, Ohio. This investment is worth an estimated $3.5 billion initially, and potentially rising to $4.4 billion. Construction will begin in 2023 with completion by the end of 2024. The venture hopes to reach 40 GWhs of production of pouch-type lithium-ion batteries by the end of 2025. Batteries will be used to supply Honda electric vehicle auto plants.

Ascend Elements announced (August 1) that it will build a “sustainable” lithium-ion battery materials facility in Hopkinsville, Kentucky, with an initial $310 million investment that could rise to as much as $1 billion over several phases. The company claims the facility will generate new cathode active battery material from recycled battery “black mass,” enough material to equip 250,000 electric vehicles per year. The company says it will utilize a “closed-loop” manufacturing system that generates minimal waste and carbon emissions compared to traditional cathode manufacturing. The initial facility will feature onsite chemical recycling capabilities and a wastewater treatment plant.

Ford announced (July 21) that it has "secured" 60 GWh of battery cells that will allow it to build 600K electric vehicles (EVs) by late 2023, and that it has 70% of the supplies needed to build 2 million EVs by 2026. To help support this effort, Ford announced last year (September 27th) that it is planning a new battery facility in Stanton, Tennessee in a production partnership with SK Innovation, called BlueOval City, and a Glendale, Kentucky facility called BlueOval SK Battery Park. Both facilities are expected to be operational by 2025.

Hyundai announced (May 22) that it will build both electric vehicle (EV) and battery manufacturing facilities worth $5.4 billion at a location in Bryan County, Georgia. The EV facility, in Bryan County, Georgia, will break ground in early 2023, will begin commercial production in the first half of 2025, and will have an annual capacity of 300,000 units. Details on the battery manufacturing portion of the announcement were not disclosed. Hyundai says that a strategic partnership in this area will be announced later.

GM announced (January 25) that it will develop a third production facility in Lansing Michigan under its Ultium partnership with LG. The new facility is expected to be operational by 2024. Other previously-announced facilities include Warren, Ohio (operational in 2022) and Spring HIl, Tennessee (operational in 2023).

Tesla already has significant operational EV battery and other battery cell production capacity at five "gigafactories," including three in the United States: Sparks, Nevada, Buffalo, New York, and Austin, Texas.

(updated: 10-11-22)

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Required Production of Inputs for Clean Energy

The Biden Administration announced (March 31, 2022) that it will use the Defense Production Act (DPA) to require companies to produce the “minerals and materials” that are needed for clean energy production (e.g., batteries). Example minerals identified in the announcement include lithium, nickel, cobalt, graphite, and manganese.

The President issued a directive supporting the policy the same day. The Directive calls for the Department of Defense (DOD) to “create, maintain, protect, expand, or restore sustainable and responsible domestic production capabilities of such strategic and critical materials” through project feasibility studies; projects at existing mines, mine waste reclamation, and other industrial facilities; and mining processing projects. While DPA implementing regulations will likely take time to fully implement, DOD will eventually be able to identify specific companies that would be required to accept contracts from the Department to produce targeted materials.

(updated: 4-1-22)

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