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Ford Plows Ahead On EV Battery Factory Amid Political Storm (axios.com) 135

Ford is moving forward with its $3 billion EV battery plant in Michigan despite political pushback and the potential loss of key U.S. tax credits that make the project financially viable. Axios reports: Ford's argument is that by building batteries using technology licensed from China's leading battery producer, CATL, it is helping to re-shore important manufacturing expertise that was long ago ceded to China. [...] "LFP batteries are produced all around Europe, and the rest of the world," said Lisa Drake, Ford's vice president of technology platform programs and EV systems. "How can we compete if we don't have this technology? Somebody has to take the lead to do this," she said, adding that it will lead to homegrown innovation and the seeding of a domestic supply base. "I'm convinced this is the right thing to do for the United States," she said.

Drake said the tax subsidies are even more important in the face of slower-than-expected EV demand. "When EV adoption slowed, it just became a huge headwind," she said. "The [production tax credit] allows us to keep on this path, and to keep going." "We don't want to back off on scaling, hiring or training in an industry we need to be competitive in the future," she said. "It would be a shame to build these facilities and then have to scale back on the most important part of it, which is the people. These are 1,700 jobs. They don't come along very often."

Consumer tax credits for EV purchases get the most attention, but for manufacturers, the far more lucrative incentives come in the form of production tax credits. Companies could receive a tax credit of $35 per kilowatt-hour for each U.S.-made cell, and another $10 per kilowatt-hour for each battery pack. With an annual production capacity of 20 GWh, Ford's battery plant could potentially receive a $900 million tax credit, offsetting almost one-third of its investment. [...] The Republican-controlled Senate could vote as early as Wednesday on a budget bill that would rewrite language around EV tax credits. A House version of the bill passed last month effectively killed the production tax credits for manufacturers by severely tightening the eligibility requirements. It also specifically prohibited credits for batteries made in the U.S. under a Chinese licensing agreement -- a direct hit on Ford.

Ford Plows Ahead On EV Battery Factory Amid Political Storm

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  • LFP for dummies (Score:5, Informative)

    by RobinH ( 124750 ) on Tuesday June 24, 2025 @07:46AM (#65471973) Homepage

    For those who aren't familiar with LFP batteries, traditional lithium batteries (such as nickel-manganese-cobalt, or NMC) have good energy density and last a long time if you pamper them, but have this problem where they burst into flames if you puncture them. And the metals in them are very expensive.

    LFP is lithium-iron-phosphate. They have less energy density (CATL's LFP have 205 Wh/kg compared to 260 Wh/kg or even over 300 Wh/kg in some NMC battery cells). However, LFP are much safer and less likely to explode if they're punctured. LFP also contains no nickel or cobalt, which is a huge advantage. LFP also has better longevity, supporting 3000 to 10,000 cycles vs 1000 to 2300 cycles for NMC.

    So LFP is not the highest performance battery cell, but it has a lot of advantages (safety, cost, longevity) that make it a winning product. You're already seeing them in "solar generator" products (basically a fancy UPS box, e.g. the EcoFlow product line) and my understanding is that Tesla's Standard Range Model 3 vehicle has used LFP cells for a while. I wouldn't be surprised if we saw LFP replace most usages of lead acid batteries in the near future since the cell voltage is 3.2V nominal, and you can stack 4 cells to get a 12.8V battery, which would be a drop-in replacement for most lead acid applications.

    • by ArchieBunker ( 132337 ) on Tuesday June 24, 2025 @08:20AM (#65472017)

      They have to call those things "solar generators" with an American flag printed on the side otherwise people will think it's woke and gay.

      • What happens if a woke, gay person wears an American flag T-shirt? Problem solved?
      • "Freedom generators"

        We could start calling electricity "Freedom fuel".

      • by GlennC ( 96879 )

        Yes, but on the plus side they get to increase the price because it's got the American flag on it.

      • Actually, I think that became a thing due to Amazon search manipulation by third party sellers, so when you search for "generator" all those damn power banks pollute the results.

        The smaller, cheaper ones are kind of neat (for keeping portable electronics charged and running some lights during an outage), but the value proposition goes right out the window when they start getting into the price range where you could buy a quality ICE inverter generator for the same cash.

        I totally get that some people use the

        • Generators are key to storm preparedness. I didn't own a generator at first as the power outages I had seen after moving into my house were short, but also annoyingly frequent. My guess is a lot of overhead power lines and tree branches shorting them out. My solution was a couple inverters, SLA batteries, a portable power pack of sorts with various useful devices attached, and a couple secondhand computer UPSes. It worked well enough that I considered the problem solved at the time.

          Then we had a big win

    • I wouldn't be surprised if we saw LFP replace most usages of lead acid batteries in the near future since the cell voltage is 3.2V nominal, and you can stack 4 cells to get a 12.8V battery, which would be a drop-in replacement for most lead acid applications.

      This isn't true for multiple reasons. First and most importantly, full charge on a 4-cell LFP is 3.6 volts. That means full charge on a nominal 12V LFP is 14.4V. Charging voltage is therefore 14.6V or 14.8V and the details are handled by the BMS. Maximum charging current is also far higher than a six-cell flooded battery, which is fully charged at 12.6V, and where maximum safe charging voltage is about 2V over the current battery voltage. (Yes, some chargers do significantly more voltage — this is bad

      • The voltage out of an automotive alternator can easily get to 15 volts. As I recall a typical range will be something like 14.2 to 14.4 volts but apparently heavy duty trucks will be regulated to 14.8 volts. I don't see the voltage difference as a problem.

        Any devices that plug into a 12 volt automotive accessory outlet will often be built to tolerate voltage as high as 16 volts. For a decent number of my automotive accessories they are built to handle 32 or even 48 volts for compatibility with 28 volt ai

        • The voltage out of an automotive alternator can easily get to 15 volts

          If it does that, there is a problem. It should never, ever go over 12.65+2=14.65v. That's how electrolyte gets cooked off.

          I doubt anyone will claim that LFP can be dropped in everywhere that there is a lead-acid battery

          The person I replied to did so.

          it's that incompatibility with common 12 volt automotive and other similar devices/systems is not among the reasons to avoid LFP.

          Yes, in fact it is a reason to avoid dropping it in anywhere that a flooded battery is used without knowing what you're doing, and I've explained why.

          Let us know when you get your A6 or equivalent.

          • If it does that, there is a problem. It should never, ever go over 12.65+2=14.65v. That's how electrolyte gets cooked off.

            This mechanic appears to disagree.
            https://bryansgarage.com/norma... [bryansgarage.com]

            If the issue is a matter that the current alternators in vehicles would not allow for LFP batteries because they aren't providing sufficient voltage then that sound like either a $30 problem with a voltage regulator replacement, or a $300 problem with replacing the alternator. If people want to replace their lead-acid battery in their vehicle with a LFP battery then parts shops can package the LFP with the regulator in the same box. That m

            • I don't know what that means, I couldn't find an answer with a quick search, but I assume it's some kind of automotive certification.

              Yes, specifically the ASE automotive electrical certification. I took the prep class at Yuba College from a multiple-decade industry veteran, and I got an A. I still have my notes. I passed the ASE A6 exam years later with a good score (someplace in the nineties, I forget exactly) when it was relevant to my employment.

              Well, I have an electrical engineering degree

              Relevant if you had studied flooded batteries or automotive charging systems, which you clearly didn't

              a ham radio license

              Irrelevant. I also have a ham radio license, so I know first hand how irrelevant that is t

    • by MacMann ( 7518492 ) on Tuesday June 24, 2025 @08:41AM (#65472057)

      Ford is wise to continue with this battery plant as the cells can be used in grid scale storage, whole-house batteries, UPS systems for computers/telephones/whatever, power tools and lawn care equipment, portable power packs like those for charging cell phones and such, and more besides just electric vehicles.

      As mentioned in the parent post these LFP batteries can be made in a form factor and with a BMS to be a drop in replacement for most any lead-acid battery. With antimony in short supply, a vital metal for durable lead-acid batteries like those for automotive use, there is an opening for more LFP batteries to take their place. Ford can get ahead on replacing lead-acid automotive batteries with LFP meaning there is a market for these batteries even if they sell few EVs.

      Then is the rising popularity of the PHEV. As far as I can tell a typical HEV, the hybrids that don't plu-in, have a battery of around 1.5 kWh. A typical PHEV battery will be about 15 kWh, ten times the capacity of the HEV battery. A BEV will have a battery of about 75 kWh, about five times the size of the PHEV battery. So, I'd expect Ford to be able to sell plenty of vehicles with LFP batteries even after the EV subsidies dry up. As I understand the EV tax credits few HEVs would qualify, and not every PHEV would qualify either, and yet people were buying them in large numbers. I'd expect that the ending of EV subsidies would reduce BEV sales while increasing sales on HEVs and PHEVs for a variety of reasons.

      I'd like to see PHEVs have a bit more all electric range, most or all on the market today have an all electric range of 50 miles or less. If they can get that up to something like 75 miles so there's a vanishingly few people that could not get their daily commute in on all electric power, and perhaps more than half can get two days or more on a single charge, then that makes the PHEV more of a BEV with a gasoline backup than a gasoline vehicle with a battery backup. If Ford is looking for places to put their extra battery capacity because BEV sales dried up then there's a clue.

      I expect the ICEV as we know it to disappear, replaced with PHEVs, HEVs, and "electrified" ICEVs where technologies developed for EVs are incorporated into ICEVs more and more. That will drive demand for LFPs.

      LFP is a safer and lower cost alternative to NMC, and Ford has ample opportunities to cash in on that advantage even if they lose some government subsidies. I believe they will end up ahead by continuing this project. As if anyone should listen to me, Ford would know more on this than I do and they aren't walking away.

      • Didn't we just see a story over the weekend about how we are overbuilding battery capacity?
      • With PHEVs you have to religiously plugin to benefit. I think EREV has a much bigger oppurtunity in the US than traditional PHEVs. Big cars, lots of people with driveways, relatively expensive cars. Perfect for range extenders.

        Also EREV still needs big batteries.

        • > With PHEVs you have to religiously plugin to benefit

          You benefit on some level whether you plug in or not - even if you don't you get much, much, greater MPG from a hybrid set-up, and if you do plug in you can pretty much avoid buying fuel for most of the year and pay very little in transportation costs. So I'm not really sure how true that is.

          Reading about it (I'd never heard the term before you mentioned it) EREVs are probably a good idea anyway, I'm actually surprised that's not what hybrids are. (Fo

        • There is no bright line that makes the distinction between EREV and PHEV so your recommendation is a bit meaningless. I'll see people make the distinction in that an EREV has no mechanical link between the ICE and the wheels. Well, the Chevy Volt (that's with a "V", not Bolt with a "B") is widely considered to be an EREV but it has a mechanical linkage between the ICE and wheels. It's a very simple linkage that is only active when at highway speeds but it is there.

          Without that bright line to make an EREV

        • Series-Parallel PHEVs like the RAV4 Prime are more efficient at highway speeds that pure series PHEVs like the i3 Range Extender. Given that Canadians and Americans tend to drive much farther and typically at higher average speeds than their European counterparts, one could argue that series-parallel PHEVs might be a better fit for much of the North American market for now.

    • Re:LFP for dummies (Score:5, Interesting)

      by AmiMoJo ( 196126 ) on Tuesday June 24, 2025 @08:44AM (#65472059) Homepage Journal

      Tesla has been using them since 2021, but other manufacturers have been using them longer and in far greater volumes too. The main issue with the Tesla ones is that they are still using cylindrical cells, instead of prismatic or pouch cells. Cylindrical cells are in theory able to deliver higher power, but in practice for a battery made up of so many of them... Well, Teslas don't charge as fast as rivals using other types of LFP cells, and acceleration is limited by the motors and grip.

      The downsides to cylindrical cells include lower energy density and greater weight per Wh. They are also more of a pain to thermally manage. It's not really clear why Tesla sticks with them, when everyone else has mostly already ditched them for automotive use.

      You can already get lead acid replacement batteries for cars that use LFP too.

  • How can we compete if we don't have this technology?

    Military action? ... again.

  • It's a new Cuba! (Score:2, Insightful)

    by shilly ( 142940 )

    The Big 3 better hope they can run at a profit in the US alone, because the current administration seems wholly committed to ensuring they will only make globally uncompetitive models: too big, shitty fuel economy, focused on ICE, non-existent pedestrian / vulnerable road user safety features, and poor quality and value for money thanks to a lack of home market competition.

    Visiting the US is going to end up being like visiting Cuba, at this rate -- something relatively few visitors do, always mindful of the

  • by hwstar ( 35834 ) on Tuesday June 24, 2025 @12:10PM (#65472575)

    are in the Big Beautiful Bill. $250.00/year additional registration fee for electric vehicles, and $100.00/yr for hybrids. An analysis has shown these fees cover more than the share of the cost for road upkeep, so they are punitive.

    From: https://insideevs.com/news/758215/federal-tax-ev-registration-250/

    Based on the Federal Highway Administration's (FHWA) math, this seems to be based on the idea that the average American driver burns through about 550 gallons of gas each year. That means that the total out-of-pocket gas tax expense comes out to around $101.

    Seems steep for EV owners, right? That's because it is. Writing a check for $250 (actually up from the original proposal of $200) is the equivalent of paying for nearly 1,100 gallons of fuel at the current gas tax rate. It's about twice what an average gas car burns in a year, and it's not a one-time charge, either. It's annual. This proposal would be the equivalent of the average commuter paying the $0.184 tax on 1,389 gallons of gasoline.

    Interestingly, the bill exempts commercial and government vehicles from any registration fees. Meaning that rental car companies, Amazon's delivery vans, and even those huge Class 8 Semis aren't facing additional (or proportional) costs despite using the road system far more aggressively than the average commuter.

    • That hybrid still burns gas which contributes to taxes. The EV never pays a tax through gas purchase, it isn't as biased as you make it out to be.

      If we go to a federal automobile registration, the taxes should simply all be paid there based on your previous year's mileage. Remove the taxes from the gas so that both ICE/hybrid/EV can all pay equally based on their actual use of the roads by mileage. You complain about fair, but I bet you won't like to actually pay fair.
    • "The federal government expects each state to implement this new federal EV tax at a state level"
      They're treading all over our State's Rights!!!

      My company can't actually make important decisions because they have no idea what the administration is going to do or screw up next.
      Government should get out of the way of business!!!

  • Hey, if Ford wants to build an battery factory **with its own money** and build EV cars that are not subsidized, more power to them. It's a free country.

    • Hey, if Ford wants to build an battery factory **with its own money** and build EV cars that are not subsidized, more power to them. It's a free country.

      Wait... I thought we were talking about America.

      • by whitroth ( 9367 )

        Well, except maybe Idaho - weren't they trying to pass a law banning any kind of EV?

        • It seems apparent that several of his actions are not simply a matter of cutting regulations, but actually amount to active punitive measures against further development of both EVs and renewable energy - effectively equivalent to creating new regulations against the further development of EVs and renewables, the free market be damned.

  • Ford knows it won't survive 5 years if it can't compete with Chinese cars + batteries. Chinese electric cars are quickly taking over as the best and least expensive option in many parts of the world. Buick, Cadillac and Lincoln each have models made in China and sold in the US market. Volvo has at least 3 models built in China for global markets, including the US.

    • by Hodr ( 219920 )

      Why would they need to compete with Chinese cars in the US? No Chinese car brand has ever made it's way stateside. We have been hearing about fabulously cheap Chinese cars for decades, but you can't buy them here and if you import them the cost savings go away. And yes, I know some well known car brands (like Volvo) produce some cars in China. Those are not the cheapo cars everyone is talking about.

      If we ever see a BYD Electric car in the US it will cost 3-4x what it did in China.

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