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Ford Motor Company F is investing $3.5 billion to build the United States’ first lithium iron phosphate battery plant.
What Happened: The plant, a wholly-owned subsidiary of Ford, will be built in Marshall, Michigan, as part of the company’s $50 billion “global push” to become an electric vehicle frontrunner, the auto giant said.
Ford said it has reached a new deal with Contemporary Amperex Technology Co., Limited under which its subsidiary will manufacture the battery cells with knowledge and services provided by the leading Chinese battery maker.
See Also: How To Buy Electric Vehicle (EV) Stocks
Why It Matters: Ford said LFP batteries are “exceptionally durable” and made using fewer higher-demand and high-cost materials.
The automaker added that these batteries will help power its next-generation of passenger vehicles and pickups.
Tesla Inc TSLA supplier CATL supplies two-fifths of the global EV battery market and made its dominant position stronger towards the end of 2022.
The company’s EV battery market share rose 40.9% in November 2022 from 36.9% in a similar period a year ago, data from SNE Research showed.
Price Action: On Monday, Ford shares closed 2.8% higher at $13.09 and fell 0.3% in the after-hours trading, according to Benzinga Pro data.
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Image and article originally from www.benzinga.com. Read the original article here.