Ford And LG Shift Mustang Mach-E Battery Production To Michigan In 2025

Ford and LG Energy Solution (LGES) announced a significant restructuring of their battery production strategy, with plans to relocate Mustang Mach-E electric vehicle (EV) battery manufacturing from Poland to Michigan in 2025.

LG to Supply 109 GWh for European Vans

In detail, the agreement also includes a substantial commitment from LG to supply Ford with 109 gigawatt-hours (GWh) of batteries for its electric commercial vans in Europe. This portion of the deal, set to begin in 2026, will span four to six years and aims to strengthen Ford’s position in the European commercial EV market.

“These agreements attest to our experience and expertise in powering commercial vehicles with innovative battery technologies designed to handle extreme user environments,” stated David Kim, CEO of LG Energy Solution. Kim emphasized that the company would leverage its local production capacity to “secure leadership in the European market and deliver unmatched values to our customers.”

Leveraging U.S. Incentives

The strategic shift in production locations is designed to help both companies maximize regional incentives on both sides of the Atlantic. For Ford, the relocation of Mach-E battery production to Michigan will help the company qualify for the United States (U.S.) government’s Clean Vehicle Tax Credit, which offers up to $7,500 for eligible EVs.

Shifting to Meet Global EV Standards

Notably, this agreement is part of a broader trend in the automotive landscape, as automakers restructure their supply chains to meet increasingly stringent battery-sourcing requirements in key markets including the U.S., Europe, and the United Kingdom (UK). 

Moreover, Ford has also established a separate partnership with SK On for battery production in Kentucky, targeting the E-Transit commercial van and F-150 Lightning pickup truck starting in mid-2025.

Furthermore, the deal coincides with LG Energy Solution’s broader investment plans in the country The company has separately announced a $3 billion investment in its Michigan battery plant, which includes a partnership with Toyota for future U.S.-built EVs.

Read More: Ford Reveals 2025 Mustang Mach-E: Lower Price, New Tech, and Upgraded Features

Supporting Long-Term EV Market Growth

As automakers and suppliers work to optimize their operations around various government incentives and regulations, the restructuring of these manufacturing operations reflects the growing importance of regional production strategies in the global EV market. 

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