- Ford Mustang Mach-E battery manufacturing will transfer from Poland to Michigan
- The transfer will translate into federal EV tax credit score eligibility
- The Ford Mustang Mach-E is assembled in Mexico
LG Vitality Answer will shift manufacturing of batteries for the Ford Mustang Mach-E from Poland to Michigan in 2025, checking a field for federal EV tax-credit qualification.
The Mach-E fell off the quick checklist of EVs that qualify for the $7,500 tax credit score this yr when more durable guidelines for the origin of battery elements and demanding minerals have been phased in. To qualify for half the credit score quantity ($3,750), the foundations stipulate 50% of important mineral content material in batteries be North American-sourced, or be from nations through which there is a free-trade settlement in place.
2025 Ford Mustang Mach-E (Premium with Sport Look Bundle)
The opposite $3,750 is predicated on North American sourcing of 60% of battery elements and North American meeting of the car itself. The Mach-E is at present manufactured in Mexico, so it meets the latter requirement. For the remainder of the lineup, the Ford F-150 Lightning at present qualifies for the total $7,500 credit score, whereas the Escape Plug-In Hybrid qualifies for a $3,750 credit score.
LG at present manufactures EV batteries in Holland, Michigan, however the battery provider and Ford had deliberate one other facility in Marshall to fabricate lithium iron phosphate (LFP) batteries, which Ford beforehand touted as a key to EV affordability. Nonetheless, Ford paused building on the $3.5 billion manufacturing facility in late 2023.
2025 Ford Mustang Mach-E (Premium with Sport Look Bundle)
Across the identical time, Ford additionally delayed building on considered one of two EV battery vegetation positioned on a standard website in Kentucky, citing lower-than-expected demand for electrical automobiles. The 2 vegetation comprise the Blue Oval SK Battery Park, a three way partnership with battery provider SK On financed with a part of a $9.2 billion authorities mortgage. Building work on the second plant was not affected.
Ford CEO Jim Farley stated in 2021 that the automaker was pursuing initiatives like this as a result of extra U.S. battery manufacturing would guarantee stability of battery provides. The transfer may even preserve carbon emissions decrease by powering factories with a home electrical energy grid that is cleaner than that of China—at present the world’s largest battery producer. The potential increase in gross sales from extra EVs that qualify for a federal tax credit score provides one other incentive.
