Ford Motor Company announced that it would invest billions of dollars in the United States to create three battery plants and an electric vehicle plant, creating 11,000 employments over the next 4 years.
According to the firm, the investment will allow it to create upwards of one million electric cars per year in the second part of this decade, making it the single largest in the company’s 118-year history. Ford, as well as a South Korean vendor, will invest a total of $11.4 billion in the project.
As part of the worldwide effort to tackle climate change, the statement is the newest multibillion-dollar initiative by a carmaker to fast transition to electric cars and transition to gasoline-powered cars and trucks. Transportation, primarily cars and trucks, accounts for more than a third of all greenhouse gas emissions in the United States, surpassing the power sector.
President Biden is pressuring Congress and other countries to pass legislation that will quickly transition the world away from the fossil fuels, and Ford’s decision might have an impact on Mr. Biden’s climate and energy agenda in Washington. It might also become a discussion point during a United Nations (UN) climate change conference in Glasgow in November, which Mr. Biden and other global leaders will attend. In an interview, Ford’s executive chairperson, William C. Ford Jr., remarked, “I believe the industry is on a rapid road to electrification.” “And the ones who aren’t will be left behind.”
Environmentalists have long chastised automakers for failing to respond forcefully sufficiently to climate change and also for selling huge, gas-guzzling trucks and SUVs. However, the industry has undertaken a difficult transition to electric cars in recent months, owing to mounting environmental concerns – as well as the competitive threat offered by Tesla, the main electric vehicle manufacturer.
Established manufacturers such as Ford and GM are racing to close the gap to Tesla, which is expected to sell over 800,000 electric vehicles this year. With a market valuation of roughly $800 billion, Tesla is by far the most valuable carmaker on the planet. Ford has a market capitalization of $56 billion.
Ford said it would develop two battery operations in Kentucky and another in Tennessee in a joint venture with SK Innovation of South Korea, its primary battery cell supplier. In addition, the firm plans to construct an assembly factory in Tennessee to produce electric pickup trucks. According to the firms, Ford will spend $7 billion while SK Innovation will invest $4.4 billion.
At least several of the new positions, such as building electric trucks, will almost certainly be unionized. Mr. Biden has claimed that the move to electric automobiles and renewable energy may produce millions of union jobs that are paying well, so this would be a win for him. However, it is unclear how successful unions are going to be in organizing workers at Ford and SK Innovation’s three battery factories.