Ford Battery Factory In Kentucky Begins Operation, NMC Battery Production Will Be For This Model

Ford battery factory in Kentucky. (Photo: InsideEVs)

JAKARTA Ford officially inaugurated its new battery factory in Glendale, Kentucky, in collaboration with South Korean battery manufacturer SK On. The presence of this facility marks Ford's important step in strengthening the supply chain of electric vehicles (EVs) amid increasingly fierce global competition.

Citing InsideEVs, Friday, August 22, the plant will produce NMC (Nickel Manganese Cobalt)-tech batteries specifically designed to support the needs of Ford's two flagship models, namely F-150 Lightning pickup trucks and E-Transit electric vans. The presence of this plant also reinforces Ford's seriousness in keeping production sustainable even though the EV market is experiencing a slowdown.

This Kentucky facility also has a huge economic impact. Currently, the factory employs about 1,450 people, and that figure could jump to 5,000 workers if it is fully operational. This is good news not only for Ford, but also for the local economy who will feel the positive impact of this large investment.

The inauguration of the plant came after Ford and SK On gained support from government policy Biden, including through large fund loans allocated to electrified projects. The funds were used to build three new battery factories, including one in Tennessee. However, the launch of facilities in Tennessee was delayed until 2027 due to EV demand growth which was not as fast as initial predictions.

Even so, Ford is currently in a challenging position. Sales of electric vehicles recorded a decline in the first half of this year: F-150 Lightning fell by almost 17 percent, E-Transit fell 34 percent, and Mustang Mach-E corrected 2 percent. This figure reflects market slowdown as well as increased competition from rivals such as Kia, Hyundai, to General Motors which continues to aggressively launch new EV models.

Despite facing market pressure, Ford insists that they will not relax their commitment to electrification. Next year, Ford plans to start producing cheaper and more durable LFP (Lithium Iron Phosphate) battery cells. Not only that, Ford is also preparing a new universal EV platform-based electric truck that is claimed to be more efficient and flexible.