Ford announced on Monday that it is investing $2 billion in remaking an assembly plant in Louisville, Kentucky, where the company will produce a new electric pickup truck for a 2027 launch date.
The automaker’s new strategy comes as China continues to dominate the EV market, with its production of finished vehicles and batteries. With the competition against China in mind, Ford is seeking to make its products less expensive for American consumers. Monday’s announcement is one step closer toward that vision.
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With an expected $30,000 starting price, the newly unveiled EV truck is set to be more affordable than what Ford’s competitors offer. For instance, Tesla’s cheapest model has a starting price of $42,490.
“We took a radical approach to a very hard challenge: Create affordable vehicles that delight customers in every way that matters – design, innovation, flexibility, space, driving pleasure, and cost of ownership – and do it with American workers,” Ford CEO Jim Farley said in a statement.
Ford said its $2 billion investment in the Louisville plant will generate 2,200 hourly jobs. Kentucky financially supports the project through an incentive.
Gov. Andy Beshear (D-KY) praised Ford’s $2 billion investment, saying it “represents one of the largest investments on record in our state” and “also boosts Kentucky’s position at the center of EV-related innovation and solidifies Louisville Assembly Plant as an important part of Ford’s future.”
The company will also invest $3 billion in a factory in Marshall, Michigan, to develop lithium-iron-phosphate batteries. Ford aims to have the batteries ready by next year.
The combined investment total of $5 billion will create almost 4,000 jobs and strengthen the domestic EV supply chain with American suppliers, the company said.
The news comes as automakers in the EV business face headwinds from President Donald Trump’s reversal of clean energy tax credits, including one that saves buyers up to $7,500 on new electric cars and another that saves up to $4,000 on used electric cars. Designed to incentivize EV purchases, both are set to expire by the end of September.
The tax credits were cut as part of the massive tax and spending bill, which Trump signed into law last month after Congress passed the measure.
Still, Ford is pushing forward with its EV production even as its financial situation worsens. Last year, the Detroit automaker lost $5.1 billion on its EV business, up from a $4.7 billion loss the previous year.
The company experienced some struggles in this year’s second quarter, reporting a $36 million net loss. Despite this, it did receive a record $50.2 billion in total revenue — a 5% increase from the same time last year. Other automakers, including General Motors and Stellantis, are similarly struggling this year due to the effects of Trump’s auto tariffs taking effect.
Tesla is also not immune to the automobile industry’s financial troubles, with the tariffs affecting the EV maker’s imports of auto parts. The cost from the tariffs is estimated to be around $300 million, although Tesla won’t know the full effect until it reports results from the next two quarters.
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Regarding Ford’s competition against China, Farley insisted the company’s priority is not about increasing production volume but rather about having “a sustainable electric business that’s profitable, that customers love.”
“This new vehicle built in Louisville, Kentucky,” he said, “is going to be a much better solution to anything that anyone can buy from China.”