The relocation of battery factories in the USA has been booming since the Inflation Reduction Act (IRA) was passed in August 2022.
In partnership with SK On, the company has already committed to spending nearly $15 billion on three battery cell manufacturing facilities in the United States with an expected total capacity of 164 gigawatt hours per year.
But now the automaker is working to secure the Provision of Materials for batteries to make your vehicles eligible for the IRA electric vehicle tax credit.
The loan offers consumers $7,500 if the vehicle they purchase meets specific battery production and sourcing guidelines.
The IRA requires that 60% of the value of battery components be manufactured or assembled in North America by 2024 to receive half the tax credit.
This percentage will increase to 100% by 2029.
To receive the remaining half, 50% of the value of critical materials must originate in the United States or a Free Trade Agreement country in 2024, and 80% between 2027 and 2032.
That’s why Ford is working on a new plant in Canada.
Systems for the production of battery cells
Construction of the Ford SK EcoPro facility has already begun, and production at the 3 million-square-foot facility is scheduled to begin in the first half of 2026.
- The site will have the capacity to produce up to 45,000 tons of active cathode per year.
The automaker estimates the new plant will create 345 new jobs in Quebec. EcoPro will manufacture the active cathode materials.
It will also work on research and development to increase battery safety, performance, and productivity while reducing the battery’s environmental footprint. Manufacturing process.
Once the deal closes, EcoPro’s Canadian partner, EcoPro CAM Canada, will oversee the ongoing operations of the facility. SK On and Ford become investors.
Ford is not alone in using the cathode materials from the new Canadian facility.
SK On’s US subsidiary, SK Battery America, has invested $2.6 billion in two of its own manufacturing facilities in Jackson County, Georgia.
SK On is also working with Hyundai to build a factory.
Overall, the company expects its annual production capacity in the U.S. to reach more than 180 GWh after 2025.