A requirement for the successful transition from ICE vehicles to EVs is to make EVs very affordable in the U.S., and experts advised locally producing most of their components to lower costs. President Biden signed an Executive Order offering funding and incentives to push domestic production of EV batteries. Ford recently announced its intention to start producing lithium iron phosphate (LFP) batteries for its EVs in a new factory in Michigan. The fast-charging batteries will create 2,500 new U.S. jobs.
Since the LFP batteries are less costly than traditional lithium-ion used in most EVs today, Ford EVs will be cheaper when the company starts using them in 2026. Meanwhile, ICL-IP America is getting nearly $200 million in investment from the U.S. federal government to build a battery plant in Missouri to make material for LFP cathodes. Another LFP battery plant by a Utah-based company called American Battery Factory is expected to start production in 2026. Green industry jobs are available.