The iconic American automaker’s partnership with LG in Michigan will open tax credits for consumers.
LG Energy Solution will move battery production to Michigan from Poland in 2025 to supply Ford’s Mach-E Mustang, the company announced this month. The move will allow consumers to claim Inflation Reduction Act (IRA) tax credits in purchasing the brand’s flagship electric vehicle (EV).
The 2024 Mustang Mach-E is currently manufactured in Mexico, which qualifies the car for a partial $3,750 IRA tax credit that stipulates North American vehicle assembly. However, the 2025 Mach-E’s battery will be made at LG’s facility in Holland, Michigan, which will qualify it for another $3,750 IRA tax credit that requires North American sourcing for 60% of the vehicle’s battery parts.
It’s worth noting that Ford has been skittish about investing in its U.S. EV supply chain. In 2023, it halted construction on a $3.5 million battery manufacturing facility in Michigan that would have created 2,500 jobs and proceeded with a scaled-back version of the plant instead. Then, in 2024, Ford announced it was postponing production of its EV pickup truck at a new Tennessee plant and canceling plans to manufacture an EV SUV.
However, the U.S. clean energy supply chain has grown substantially in recent years. During the Biden administration, private companies have announced more than $180 billion in U.S. EV and battery manufacturing investments.
The 2025 Mustang Mach-E with Made in Michigan batteries will come on market in early 2025.