Ford commits $2 billion for the production of electric trucks in Louisville
In a significant move towards electrification, Ford Motor Company has announced plans to invest $5 billion in its Louisville, Kentucky, and Marshall, Michigan, facilities for the production of its next-generation electric trucks. This investment is part of a broader strategy to transition towards sustainable and profitable business operations.
The heart of this strategy lies in Ford's innovative production system, which utilizes low-cost lithium-iron-phosphate (LFP) batteries. This system offers several advantages over traditional internal combustion engine (ICE) options, particularly in terms of parts, fasteners, workstations, assembly time, and ergonomics.
One of the key benefits of this new system is the reduction in parts and fasteners. The Universal EV Platform, a core component of the new system, reduces parts by 20% and fasteners by 25% compared to typical vehicles. This simplification streamlines manufacturing, reduces complexity, and contributes to a more efficient production process.
The system also requires 40% fewer workstations in the plant and enables 15% faster assembly time. This speed and efficiency improvement are expected to lead to a dramatic leap forward in continuous improvement.
Another significant advantage is the battery pack design. The cobalt- and nickel-free LFP battery pack serves as the vehicle’s floor and structural sub-assembly. This design lowers the center of gravity, improving handling, creating a quiet cabin, and increasing interior space—enhancing ergonomics and passenger comfort.
The use of LFP prismatic batteries also enables space and weight savings compared to traditional battery chemistries. This contributes to better weight distribution and energy efficiency in the vehicle.
The wiring harness in the new electric truck is over 4,000 feet shorter and 10 kg lighter than in Ford’s earlier EVs, further reducing complexity and weight.
The LFP chemistry is approximately 35% cheaper to produce than nickel-cobalt-aluminum (NCM) batteries, contributing to a lower overall vehicle cost. This cost reduction, combined with the innovations in manufacturing, enables a starting price around $30,000 for the midsize electric pickup.
The Louisville Assembly Plant will receive $2 billion of the investment for a modular family of future EVs. The plant, currently home to the Escape small crossover, will initially build a mid-sized electric pickup, but the new electric architecture is modular and able to support various vehicle types.
The new production system for Ford's electric vehicles at the Louisville plant will be more like a tree with three separate production processes. This new system, which has been re-created from scratch, puts employees at the center and is expected to result in a significant reduction in errors during assembly due to its design.
The new vehicles will be powered by low-cost but lower-range LFP batteries. Despite the lower range, the dramatic reduction in parts, connectors, and wire, and the streamlined assembly process are anticipated to be significant factors in the complexity reduction. This reduction, in turn, is expected to lead to ergonomic breakthroughs and significant quality and cost wins.
Ford empowered a tiny skunkworks team three time zones away from Detroit to design the new vehicles. The company tore up the moving assembly line concept and designed a better one for the new vehicles, promising a manufacturing process that is more efficient, sustainable, and profitable.
In summary, Ford's new production system leverages LFP battery technology and platform design to reduce the number of parts and fasteners, cut assembly time by 15%, cut 40% of workstations, and improve vehicle ergonomics through a battery pack serving as structural floor. These innovations combine to lower costs, increase manufacturing efficiency, and enrich driver and passenger experience compared to traditional ICE trucks.
- Ford's new production system, utilizing low-cost lithium-iron-phosphate (LFP) batteries, aims to improve ergonomics and passenger comfort by designing the battery pack as the vehicle's structural floor.
- The innovative production system at Ford's Louisville plant, inspired by a skunkworks team, promises a more efficient, sustainable, and profitable manufacturing process, with a significant reduction in errors during assembly.
