The automotive industry’s transition toward electric vehicles makes the battery supply chain a central focus for manufacturers like Ford. Sourcing the high-voltage power packs for models such as the Mustang Mach-E and F-150 Lightning is a highly strategic endeavor. Ford’s battery supply is a dynamic blend of established global suppliers and a newly formed internal manufacturing ecosystem. This shift reflects a move from being solely a purchaser of cells to becoming a major producer, securing the long-term supply needed to meet ambitious production goals.
Current External Battery Suppliers
Ford relies on established, large-scale battery producers to power its existing lineup of electric vehicles. These multinational companies supply the lithium-ion cells and modules used in the Mustang Mach-E, the F-150 Lightning pickup, and the E-Transit commercial van. The primary technology for extended-range and performance versions is Nickel Manganese Cobalt (NMC) chemistry, favored for its high energy density.
The South Korean firm SK On, a subsidiary of SK Innovation, is a major collaborator and foundational partner in Ford’s electrification strategy. SK On supplies the NMC battery cells that form the core of the F-150 Lightning’s power systems and are used in other Ford EVs. LG Energy Solution, also based in South Korea, is another significant supplier, providing cells for the Mustang Mach-E.
Ford also incorporates cells from the Chinese battery giant Contemporary Amperex Technology Co., Limited (CATL) for its standard-range models. CATL provides Lithium Iron Phosphate (LFP) cells, which are already used in certain versions of the Mustang Mach-E and are planned for the F-150 Lightning. Relying on these external suppliers allows Ford to scale production immediately while its domestic manufacturing facilities are under construction.
Ford’s Shift to Internal Manufacturing
Ford is transitioning from a customer of battery technology to a manufacturer, primarily through BlueOval SK, a large-scale joint venture. This 50/50 partnership with SK On represents a multi-billion-dollar investment to establish a dedicated, high-volume domestic supply chain for battery cells. The joint venture is constructing three manufacturing facilities, often called gigafactories, across two key locations in the United States.
Two plants are situated in Glendale, Kentucky, forming the BlueOval SK Battery Park. These facilities will produce a substantial volume of lithium-ion batteries for future Ford and Lincoln electric vehicles. The third facility is being built in collaboration with Ford’s new assembly plant at BlueOval City in Stanton, Tennessee. Collectively, these three plants are projected to deliver an annual production capacity of up to 129 gigawatt-hours (GWh), ensuring a secure supply for millions of electric vehicles.
Ford is also establishing a wholly owned manufacturing center: the BlueOval Battery Park Michigan in Marshall, Michigan. This facility represents a $3.5 billion investment and is dedicated exclusively to the production of Lithium Iron Phosphate (LFP) battery cells. Ford maintains full ownership of this plant but will license the manufacturing technology and services from CATL. This strategy gives Ford direct control over production while leveraging established LFP expertise. Production at the Marshall site is planned to begin around 2026, marking Ford’s first fully controlled battery cell production facility in North America.
Key Battery Technologies and Future Sourcing
Ford’s battery strategy utilizes a dual-chemistry approach: Nickel Manganese Cobalt (NMC) and Lithium Iron Phosphate (LFP). These two chemistries offer distinct performance characteristics and sourcing implications, enabling Ford to serve different segments of the electric vehicle market. NMC batteries, used in extended-range versions, are prized for their high energy density, meaning they store more energy per unit of weight. This translates directly into a longer driving range, making them suitable for vehicles where maximum distance is a priority, such as high-trim pickups and performance models.
LFP batteries are less energy-dense than NMC cells, resulting in a slightly lower maximum range for the same size pack. However, LFP chemistry offers advantages in cost and durability, as they use less expensive and more abundant raw materials like iron and phosphate instead of cobalt and nickel. LFP cells also exhibit superior thermal stability and a longer cycle life, meaning they can be charged to 100% daily without the degradation concerns associated with NMC cells.
The shift to LFP for standard-range and commercial vehicles, such as the E-Transit, is a strategic move to lower the overall cost of electric vehicles and diversify the supply chain. Using LFP cells reduces Ford’s reliance on the volatile markets for nickel and cobalt, increasing the resilience of its supply chain. This diversified technology and sourcing plan ensures that Ford can offer a range of affordable and high-performance electric vehicles to meet the varied needs of its customer base.