Summary
- LG Energy Solution will shift production of Ford Mustang Mach-E batteries from Poland to Michigan in 2025
- The move will allow the Mach-E to qualify for federal EV tax credits
- The Mach-E is currently assembled in Mexico
- The tax credit rules require North American sourcing of battery parts and critical minerals
- The move will support U.S. battery production, lower carbon emissions, and potentially boost EV sales
Article
Ford’s Mustang Mach-E battery production is set to move from Poland to Michigan, which will allow the vehicle to qualify for federal EV tax credits. LG Energy Solution will shift battery production for the Mach-E from Poland to Michigan in 2025, ensuring that the vehicle meets the criteria for the tax credit. The Mach-E had previously lost eligibility for the $7,500 tax credit due to stricter rules regarding the origin of battery components and critical minerals. The move to Michigan will help the vehicle qualify for half of the credit amount, with the remaining eligibility based on North American sourcing of battery parts and assembly of the vehicle.
The Ford Mustang Mach-E is currently assembled in Mexico, meeting the requirement for North American assembly. The shift of battery production to Michigan will help the vehicle meet the criteria for the federal EV tax credits, providing a financial incentive for consumers to purchase the vehicle. The Ford F-150 Lightning and Escape Plug-In Hybrid also currently qualify for tax credits, with the F-150 Lightning qualifying for the full $7,500 credit. The move of battery production to Michigan is part of a larger effort by Ford to increase U.S. battery production and ensure stability of battery supplies.
LG currently produces EV batteries in Holland, Michigan, and had plans to construct a facility in Marshall for manufacturing lithium iron phosphate (LFP) batteries. However, construction on the $3.5 million factory was paused in late 2023. Ford also delayed construction on one of two EV battery plants in Kentucky, citing lower-than-expected demand for electric vehicles. The Blue Oval SK Battery Park, a joint venture with battery supplier SK On, includes the two plants and is financed with a government loan. Construction on the second plant was not impacted by the delay.
Ford CEO Jim Farley has emphasized the importance of U.S. battery production in ensuring stable supplies of batteries for electric vehicles. By moving battery production to Michigan, Ford aims to reduce carbon emissions and power its factories with a cleaner domestic electricity grid. This shift will also enable more EVs to qualify for federal tax credits, potentially boosting sales of electric vehicles. The move to Michigan is part of Ford’s larger strategy to increase U.S. battery production and support the shift towards electric vehicles.
In addition to battery production, Ford is also focused on expanding its lineup of electric vehicles and increasing production capacity. The company’s investment in EV technology and infrastructure demonstrates its commitment to sustainability and reducing carbon emissions. By shifting battery production to Michigan and aligning with federal tax credit eligibility requirements, Ford is positioning itself for growth in the electric vehicle market. The move will not only support the production of the Mustang Mach-E but also contribute to a cleaner and more sustainable future for the automotive industry.
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