Under a new deal inked between Ford and LG, the companies will move production of EV batteries for the Ford Mustang Mach-E from Poland to its Michigan facility by 2025. This (Yes) everything about IRA and tax credits.
“To take advantage of competitive market conditions,” the new agreement moves Ford Mach-E battery production to the US, where those batteries can take advantage of various American incentives. In Europe, LG plans to take advantage of more incentives There by supplying a total of 109 GWh batteries to Ford for their electric commercial vans starting in 2026.
“These agreements prove our knowledge and experience in powering commercial vehicles with new battery technologies designed to handle extreme user situations,” said David Kim, CEO of LG Energy Solution. “Using our local manufacturing capabilities, we will secure leadership in the European market and bring unmatched value to our customers with advanced battery technology that effectively addresses a variety of needs.”
It's about Ford, but not only Ford
Ford isn't the only automaker entering into strategic agreements to build American battery supply chains to qualify for (up to) $7,500 in Clean New Vehicle Tax Credits for EVs and PHEVs. LG Energy also announced it will invest $3 billion in its Michigan battery facility as part of a separate deal to supply lithium to Toyota for use in batteries for future, US-built EVs.
In addition to the LG deal, Ford has an agreement with SK On to build batteries in Kentucky for the updated E-Transit commercial van and the F-150 Lightning electric van starting in mid-2025.
Electrek's Take
Fossil fuels have enjoyed government subsidies in the form of government reserves, OPEC deals, and municipal fleets to build intergenerational economies. So, it's only fair that part of that funding goes down (ha!) to the electric car market. Ford, Toyota, GM, and all the others who move their battery production to the US are doing it right.
While you're thinking about all those incentives, click the links below to see what kind of deals you can find on Ford Mustang Mach-E, Lightning, and Toyota bZ4X models near you:
SOURCE | PHOTOS: LG Energy Solutions, via PR Newswire.
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