Ford Motor has begun construction on a $5.6 billion electric vehicle plant in Tennessee, to advance its goal of producing 2 million electric vehicles per year by late 2026, the company announced Friday.
The 6-square-mile Stanton site, known as BlueOval City, is slated to open in 2025 and will include a battery cell factory and assembly plant for Ford and Lincoln EVs. It is part of a joint venture between Ford and its South Korean battery partner SK On to scale the automaker’s domestic EV production, according to the news release.
As part of this effort, Ford said in July that the companies are building three battery factories – two in central Kentucky and one in Tennessee – to boost in-house battery production capacity.
Automakers are working to secure a stable supply of EV batteries as demand for vehicles exhausts key materials and outpaces manufacturing capabilities. This summer, Ford signed a series of direct-sourcing agreements to secure key battery materials.
BlueOval City will house a cluster of component suppliers in proximity to the assembly plant, supported by the sourcing deals. It will also include a battery recycling program in partnership with Redwood Materials, which will enable the company to exert greater control over its supply chain, the company said last year.
“The facility is the blueprint for Ford’s manufacturing facilities and will enable Ford to help lead America’s shift to electric vehicles,” Eric Grubb, Ford director of new footprint construction, said in a statement.
The move comes as Ford doubles down on its supply chain as it looks to expand EV production. Ford restructured its C-suite to add a chief supply chain officer and other positions supporting EV development and supply chain management.
In particular, Lisa Drake, vice president, EV industrialization, will be responsible for creating integrated systems as Ford ramps up its EV production to meet its 2026 target, the release said.