Ford Motor Company made a historic commitment of paying more than $11 billion to build a reliable supply chain for electric car components and generating over 11,000 jobs in the process. This initiative, the largest in the automaker's 118-year history, would go toward the construction of a new assembly facility dedicated to all-electric F-Series trucks, as well as three battery facilities. The move pits Ford against other automakers that are moving away from internal combustion engines and toward battery-powered vehicles in real-time.
Ford's Investment in Electric Vehicles
Two factories in Tennessee and one in Kentucky will begin production in 2025, while a third in Kentucky, which is planned to start in 2026, will produce battery cells. The process includes recycling as well.
Success for automakers in the future depends on the location of battery production and distribution. In the United States, businesses are looking for a secure local supply chain. As part of a joint venture with SK Innovation, a South Korean battery manufacturing company, Ford claimed a $7 billion investment.
Environmentalists have long criticized automakers for not doing enough to combat climate change and for pushing large, gas-guzzling vehicles and SUVs. However, the industry has been forced to undergo a tough shift to electric vehicles in recent months due to growing environmental concerns and the competitive challenge given by Tesla, the market's top electric car producer.
Major manufacturers like Ford and GM are interested in partnering with Tesla, which aims to sell over 80,000 electric cars this year. By virtue of its $800 billion market valuation, Tesla has overtaken Toyota as the world's most valuable automaker. On the open market, Ford is valued at $56 billion.
Some of the new positions, most likely in electric vehicle assembly, will be unionized. According to President Biden, millions of well-paid union jobs might be created by a shift to electric cars and renewable energy. Ford and SK Innovation's three battery factories are yet to see how successful unions will be in organizing their personnel.
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