Ford Announces Approximately $5 Billion Investment in Kentucky and Other States for EV-Related Projects

This is a business brief by JETRO released on August 15, 2025, regarding Ford's electric vehicle (EV) related investment in the United States. Investment Overview and Scale On August 12, Ford announced it will invest approximately $5 billion domestically to begin production of medium-sized EV pickup trucks using a new electric vehicle platform and manufacture prismatic LFP batteries. The investment breakdown includes approximately $2 billion for assembly plant expansion and infrastructure equipment in Louisville, Kentucky, and approximately $3 billion for new prismatic LFP battery manufacturing at the Blue Oval Battery Park in Michigan. Technological Innovation and Efficiency Ford's newly introduced "Ford Universal EV Platform" enables coverage of a wide range of vehicle types from passenger cars to pickup trucks. This new platform achieves a 20% reduction in parts count, 25% reduction in fasteners, 40% reduction in factory work stations, and 15% reduction in assembly time compared to conventional methods. These efficiency improvements enable affordable large-scale manufacturing, with plans to launch medium-sized EV pickup trucks at a target price of approximately $30,000 in 2027. Market Strategy and Employment Effects This investment is expected to maintain and create approximately 4,000 jobs, with production scheduled to begin in 2026. Ford CEO Jim Farley stated in the July 30 earnings announcement that "to effectively compete with Chinese companies in EVs globally, fundamental redesign of engineering, supply chain, and manufacturing processes is necessary." According to Cox Automotive's survey, EV new vehicle sales in Q2 2025 decreased 6.3% year-over-year to 310,839 units, making this a long-term strategic investment amid EV market deceleration due to the Trump administration's withdrawal of EV promotion policies. The article demonstrates that Ford is continuing EV development as a long-term global strategy to compete with Chinese companies, despite short-term EV market sluggishness.