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Ford plans to begin manufacturing an electric commercial van in Ohio by 2026 and will relocate some battery production to Michigan
Ford Motor is scaling back its electric vehicle (EV) plans, delaying the launch of its next-generation F-150 Lightning electric truck and scrapping a planned three-row electric SUV to control costs amid slowing EV demand. The carmaker, which anticipates a $5.5 billion loss on electric vehicles this year, is changing course and concentrating on markets where it already has a competitive advantage, such commercial vehicles and pickup trucks.
The company announced it will produce a mid-size electric pickup by 2027, leveraging new, cost-effective battery technology. However, while consumer concerns about EV pricing and infrastructure for charging linger, Ford's yearly capital spending share allocated to pure EVs will decline from 40% to 30%. This is in line with a larger industry shift towards hybrids. Ford plans to begin manufacturing an electric commercial van in Ohio by 2026 and will relocate some battery production to Michigan to benefit from U.S. Inflation Reduction Act incentives. The automaker’s strategy includes the use of lithium iron phosphate (LFP) batteries, licensed from Chinese company CATL, with production starting in Michigan by 2026.
Ford’s stock rose 2.16% following the news, signaling investor support for the company's recalibrated EV strategy. Analysts suggest this move reflects a broader industry trend of moderating EV ambitions in favor of hybrid models, which are currently more popular with consumers. Ford plans to provide further updates on its electrification strategy in 2025.
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