- Ford Mustang Mach-E battery production will move from Poland to Michigan
- This step will translate into eligibility for the federal EV tax credit
- The Ford Mustang Mach-E is assembled in Mexico
LG Energy Solution will revolutionize the production of Ford Mustang Mach-E batteries from Poland to Michigan in 2025checks the box for federal EV tax-credit qualification.
The Mach-E is on the short list of EVs eligible for a $7,500 tax credit this year when tougher rules on the origin of battery components and key minerals are phased in. To qualify for half the credit amount ($3,750), regulations stipulate that 50% of the mineral content in batteries must be North American, or from countries where there is a free trade agreement.
2025 Ford Mustang Mach-E (Premium with Sport Appearance Package)
Another $3,750 is based on North American sourcing of 60% of the battery components and North American assembly of the vehicle itself. Mach-E is it currently produced in Mexicoso it meets the last requirement. Across the program, the Ford F-150 Lightning currently qualifies for a full $7,500 credit, while the Escape Plug-In Hybrid qualifies for a $3,750 credit.
LG currently produces EV batteries in Holland, Michigan, but the battery supplier and Ford had planned another facility in Marshall to make lithium iron phosphate (LFP) batteries, which Ford previously said was key to the affordability of the EV. However, Ford halted construction $3.5 million factory by late 2023.
2025 Ford Mustang Mach-E (Premium with Sport Appearance Package)
At the same time, Ford also construction delays at one of two EV battery plants located in a common area in Kentucky, indicating lower-than-expected demand for electric vehicles. The two plants include the Blue Oval SK Battery Park, a joint venture with battery supplier SK On that is partially funded by a $9.2 billion government loan. Construction activity in the secondary industry was not affected.
Ford CEO Jim Farley said in 2021 the automaker is pursuing projects like these because there are many US battery production will ensure the stability of the battery material. The move would also keep carbon emissions low by powering factories with a cleaner domestic power grid than China's—currently the world's largest battery producer. A potential boost in sales from more EVs qualifying for federal tax credits adds another incentive.