Ford has announced that it will be investing $3.5 billion to build a factory in Michigan that will make cheaper lithium iron phosphate batteries for its growing portfolio of electric vehicles. 

The factory will be in Marshall, Michigan and will not make the usual nickel manganese cobalt that it is current EVs. Ford has said that its working with Chinese company CATL. Through the partnership, Ford’s subsidiary will manufacture the batteries and will use services provided by CATL. 

“We are committed to leading the electric vehicle revolution in America, and that means investing in the technology and jobs that will keep us on the cutting edge of this global transformation in our industry,” said Ford executive chair Bill Ford said in a statement. “I am also proud that we chose our home state of Michigan for this critical battery production hub.” 

The factory will cost the car manufacturer a total of $3.5 billion and is a huge part of the plan to invest more than $50 billion globally in electric vehicles through 2026. Ford said it plans to deliver 600,000 electric vehicles globally by the end of this year and 2 million by the end of 2026. 

The factory is to be called BlueOval Battery Park Michigan and hopes to employ 2,500 workers. Production is expected to begin in 2026. 

Ford’s decision to manufacture LFP batteries in the United States is following suit of many automakers to adopt this older, cheaper and safer technology. Tesla, for instance, already uses LFP batteries in the EVs it makes and sells in China