BUSINESS

Ford’s CATL Battery Plant Up and Running

Published: Jun. 30, 2026 7:08 p.m. GMT+8

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Production got underway this month at a Ford Motor Co. plant in Michigan that makes batteries with technology licensed from China’s Contemporary Amperex Technology Co. Ltd. (CATL).

The milestone marks a hard-won victory for the companies’ novel partnership model, which has survived intense political scrutiny from U.S. lawmakers and significant policy reversals under the Trump administration that forced Ford to downsize the project.

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Explore the story in 30 seconds

Ford's Michigan battery plant using CATL technology started production, surviving political scrutiny and policy reversals.
Capacity reduced from 35 to 20 GWh, investment cut to $2 billion; plant aims to ship EV batteries in 2026.
Trump policy changes forced Ford to shift part of capacity to energy storage; Chinese battery-maker faces tariff and compliance challenges.

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Who’s Who

Ford Motor Co.: Ford Motor Co. began battery production in Michigan using CATL technology. The plant, wholly owned by Ford, has a $2 billion investment and 20 GWh capacity. It faced political scrutiny and policy reversals under Trump, including terminated EV tax credits. Ford shifted part of the plant's capacity to energy storage products.

Contemporary Amperex Technology Co. Ltd.: Contemporary Amperex Technology Co. Ltd. (CATL) is a Chinese battery-maker that licensed lithium iron phosphate battery technology to Ford for a Michigan plant. Production began in June 2025 after political scrutiny and downsizing. CATL vice president Meng Xiangfeng announced the factory's operational status, highlighting challenges of tariffs and local content requirements overseas.

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What Happened When

February 2023：: Ford and CATL agreed to a partnership, with Ford owning the facility and CATL licensing LFP battery technology and assisting with construction and operation.

November 2023：: Ford restarted the project, pausing it earlier after political backlash, with a reduced investment of $2 billion and smaller capacity of 20 GWh.

September 2025：: The Trump administration terminated EV tax credits ahead of schedule and relaxed fuel economy standards for gasoline vehicles.

December 2025：: Ford announced sweeping adjustments, taking a $19.5 billion impairment charge on its EV assets, canceling several battery projects, and shifting a portion of the Michigan plant's capacity toward energy storage products.

January 2026：: Ford's plan to convert an existing power battery plant into a storage battery facility using CATL's technology prompted further Republican scrutiny.

June 17, 2026：: Ford stated that the facility had completed trial production of the first batch of lithium iron phosphate (LFP) prismatic batteries meeting safety and quality standards.

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