Home Stock Here is why Ford is spending $11 billion

Here is why Ford is spending $11 billion


Ford (NYSE: F) has announced that it is expediting its electric vehicle manufacturing plans with three new giant battery factories and a new Gigafactory in Tennessee to produce electric pickups. The giant project is dubbed “Blue Oval City.”

The Blue Oval City project will be a complex built in a six square mile location in Santon, Tennessee, to produce the company’s next-gen electric F-Series pickup trucks and advanced car batteries. Ford is collaborating with Korean battery cell manufacturer SK Innovation.

Ford creating 11,000 jobs

Interesting, Ford and SK Innovation will build a “BlueOvalSK Battery Park” in Glendale, Kentucky, on top of the battery plant. The park will comprise twin battery factories that will power Ford and Lincoln’s new electric vehicles lineup.

The companies will invest $11 billion in deploying the new production capacity. Notably, the factories will create 11,000 jobs in total, 5,000 for the two factories in Kentucky and 6,000 jobs at Blue Oval City. 

The three battery factories will have production of 129 GWh of battery cells annually for the production of EVs. Production for the next generation F-series pickups will commence in 2025.

Ford recently commenced production of the F-150 Lightning EV pickup trucks. The company plans to increase production to 15,000 units by next year, 55,000 by 20223, and 80,000 by 2024. The company will then target 160,000 cars by 2025 once second-generation F-150 Lightning hits the road. Ford Executive Chair Bill Ford said:

This is a transformative moment where Ford will lead America’s transition to electric vehicles and usher in a new era of clean, carbon-neutral manufacturing. With this investment and a spirit of innovation, we can achieve goals once thought mutually exclusive – protect our planet, build great electric vehicles Americans will love and contribute to our nation’s prosperity.

Demand for EVs triggering Ford’s expansion

The news comes on the heels of Ford’s recent announcement to expand manufacturing capacity and add employment at the Ford Rouge Electric Vehicle Center in Dearborn, Michigan. This is due to robust demand for the Ford F-150 Lightning truck, Mustang Mach-E, and E-Transit, electric vehicles.

Ford CEO Jim Farley said:

We are moving now to deliver breakthrough electric vehicles for the many rather than the few. It’s about creating good jobs that support American families, an ultra-efficient, carbon-neutral manufacturing system, and a growing business that delivers value for communities, dealers, and shareholders.

The post Here is why Ford is spending $11 billion appeared first on Invezz.

You may also like