The automaker says construction is about 60% complete on BlueOval Battery Park Michigan, a $3 billion factory that will produce lithium iron phosphate batteries by licensing technology from China’s Contemporary Amperex Technology Co. Ltd., the world’s largest battery manufacturer.
Battery production is expected to begin in 2026.
“The team is on track with the build-out of the structure, which is complete, and major process mechanicals, electrical and piping are well underway,” said Lisa Drake, Ford’s vice president of technology platform programs and EV systems, in a June 23 update.
Ford announced in February 2023 it planned to build a battery factory on a sprawling megasite in Marshall, about 90 miles southeast of Grand Rapids, as former President Joe Biden’s Inflation Reduction Act incentivized electric vehicle manufacturing.
But since then, it’s been a bumpy road.
Some in the community, concerned about a stretch of rural land being turned into an industrial park, fought the project. Softening electric vehicle sales prompted Ford to abruptly halt construction two years ago. Ford faced scrutiny from lawmakers for licensing tech from China. And the automaker scaled back the scope of the project and shrunk job numbers, leading to a smaller incentive package from the state of Michigan.
Most recently, executive chairman Bill Ford warned at the end of May the project was “imperiled” by President Donald Trump’s proposed budget bill, dubbed the Big, Beautiful Bill.
A Republican-led U.S. House of Representatives passed a version of the bill in May. It would phase out tax credits for consumers buying electric vehicles. The legislation would also end tax credits for battery plants built in the United States and restrict credits for batteries made with Chinese technology.
“We made a certain investment based upon a policy that was in place. It’s not fair to change policies after all the expenditure has been made,” he reportedly saidat the Mackinac Policy Conference on May 29.
Republicans are pushing to get a final version of the bill – which needs to be agreed upon by both the House and the Senate – to Trump by July 4.
The U.S. Senate has yet to vote on a revised version of the bill with Trump urging Senate Republicans to lock themselves in a room, if necessary, “and GET THE DEAL DONE THIS WEEK,” he posted on his Truth Social platform.
But Drake told reporters at a Monday, June 23 tour of the factory that Ford will forge ahead with the battery plant regardless of how the budget bill shakes out.
“We don’t want to back off on this facility,” she reportedly said. “When we invest, we stick behind our investments. Ford is a company that will weather the storm until we get there.”
Ford expects BlueOval Battery Park Michigan, a nearly mile-long building that spans 2 million square feet, will employ 1,700 people when complete. Construction has also brought an estimated 1,500 workers to the area.
A group of Marshall leaders and business owners expressed support for the plant during a Wednesday, June 25 press conference, saying it will lead to new jobs, investment and a boost to local businesses.
“The future of Marshall looks better today than it has in 40 years,” said Scott Wolfersberger, mayor of the City of Marshall.
The factory’s battery production equipment is already operational, according to Drake, producing sample lithium iron phosphate cells at an off-site location.
After production equipment is installed this summer, Ford will seal off areas in the facility to transition into “clean room” status.
The plant will have the capacity to produce 20 gigawatt-hours of lithium iron phosphate batteries – down from the original estimated 35 gigawatt-hours. For comparison, Ford’s sprawling $5.6 billion battery park in Tennessee can produce up to 86 gigawatt-hours a year.
Drake called the facility a “historic step” because an American auto company is manufacturing lithium-iron phosphate batteries domestically without relying on joint venture with a foreign company.
This type of battery chemistry, according to Ford, is considered the lowest-cost technology for electric vehicles.
“The scale of the facility is also key to unlock the cost benefits,” Drake said. “We are bringing home to the U.S. the innovation that escaped our industry decades ago, and the result is we will not have to rely on imports in a continually changing global trade environment.”
© 2025 Advance Local Media LLC. Distributed by Tribune Content Agency, LLC.
