“I love this oval.” That’s the word out of Ford’s (NYSE:F) CEO as he announced that a new battery plant was coming to Michigan. Ford shareholders are pretty happy with the news, as its stock gained nicely in Monday afternoon trading.
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Ford’s aspirations in electric vehicle manufacturing are well-known by now. In a bid to push those ambitions further, Ford will build a new battery manufacturing plant in Marshall. Rather, the “Marshall megasite,” a 2,000-acre sprawl right next to Marshall proper. However, it will be a while before batteries emerge from the plant, as the first production will start in 2026, reports note. The new Ford battery will be lithium iron phosphate, a kind of battery that’s considered unusually durable in the electric car market.
Ford’s ambitions are substantial. It expects to produce two million electric vehicles a year by 2026 when the new battery plant is up and running. Yet, in the process, it’s doing some unsettling things to get there. One of the biggest issues is CATL, a Chinese battery maker serving as a helping hand in this venture. CATL will provide several critical materials to help get the Ford plant—the first such plant backed by an automaker—off the ground.
Nevertheless, Wall Street is somewhat skeptical of Ford. Current analyst consensus calls Ford stock a Hold, with an average price target of $14.09. This implies 8.01% upside potential.
