- 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 Power 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 listing of EVs that qualify for the $7,500 tax credit score this 12 months when harder guidelines for the origin of battery elements and important minerals have been phased in. To qualify for half the credit score quantity ($3,750), the foundations stipulate 50% of vital mineral content material in batteries be North American-sourced, or be from international locations wherein 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 components and North American meeting of the car itself. The Mach-E is presently manufactured in Mexico, so it meets the latter requirement. For the remainder of the lineup, the Ford F-150 Lightning presently qualifies for the complete $7,500 credit score, whereas the Escape Plug-In Hybrid qualifies for a $3,750 credit score.
LG presently 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 million manufacturing unit in late 2023.
2025 Ford Mustang Mach-E (Premium with Sport Look Bundle)
Across the similar time, Ford additionally delayed building on certainly one of two EV battery crops situated on a standard website in Kentucky, citing lower-than-expected demand for electrical autos. The 2 crops 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 maintain carbon emissions decrease by powering factories with a home electrical energy grid that is cleaner than that of China—presently 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.