Ford to invest USD 11.4 billion in its largest plant yet

The plant will be built in west Tennessee and will be Ford’s most advanced and efficient plant yet.

Published On Sep 28, 2021 01:08:00 PM

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Ford to invest USD 11.4 billion in its largest plant yet

Ford is to build the largest, most advanced and most efficient auto production complex in its 118-year history. Called Blue Oval City, the complex will be constructed in west Tennessee.

New plant to be called Blue Oval City
Will produce the electric F-Series trucks and batteries
The plant will be carbon neutral with zero waste to landfill
New BlueOvalSK Battery Park to be built in Kentucky

Ford Blue Oval City plant: what is it and what will it produce?

Ford has announced plans to bring electric vehicles at scale for American customers with two new massive campuses in Tennessee and Kentucky that are environmentally and technologically advanced. These factories will produce the next generation of electric F-Series trucks and the batteries to power future electric Ford and Lincoln vehicles.

Ford plans to make the largest ever investment in EVs at one time by any automotive manufacturer. It plans to do this with partner SK Innovation and invest $11.4 billion (Rs 84,371 crore) which would create nearly 11,000 new jobs at the Tennessee and Kentucky mega sites. An all-new $5.6 billion mega campus in Stanton, Tennessee, called Blue Oval City, will create around 6,000 jobs and re-imagine how vehicles and batteries are manufactured.

Blue Oval City will become a vertically integrated ecosystem for Ford to assemble electric F-Series vehicles and will include a BlueOvalSK battery plant, key suppliers and recycling. Ford’s new Tennessee assembly plant is designed to be carbon neutral with zero waste to landfill once fully operational.

In central Kentucky, Ford plans to build a dedicated battery manufacturing complex with SK Innovation – the $5.8 billion BlueOvalSK Battery Park – creating 5,000 jobs. Twin battery plants on the site are intended to supply Ford’s North American assembly plants with locally assembled batteries.

Ford’s investment in EVs

This news comes amid strong demand for the all-new Ford F-150 Lightning truck, E-Transit and Mustang Mach-E electric vehicles. This is part of Ford’s recent announcement to expand production capacity and add jobs at the Ford Rouge Electric Vehicle Centre in Dearborn, Michigan.

Ford’s $7 billion investment is the largest ever manufacturing investment at one time by any automotive manufacturer in the US and is a part of Ford’s more-than-$30 billion investment in electric vehicles through 2025. This investment supports the company’s long-term goal to create a sustainable American manufacturing ecosystem and accelerate its progress towards achieving carbon neutrality. Overall, Ford expects 40 to 50 percent of its global vehicle volume to be fully electric by 2030.

Ford India

Earlier in September, Ford India announced that it was ceasing manufacturing of vehicles for local sale, effective immediately. While the carmaker will stop producing cars in India it has committed to continue full support operations with service, aftermarket parts and warranty services. Additionally, the American brand will continue to sell imported CBU models like the Mustang and Ranger pickup truck.

Also see:

Ford to stop manufacturing cars in India - What does that mean for you?

Oh Henry!

The two big challenges for Ford’s CBU only plan