Ford Invests US$2bn in Kentucky EV Plant and New Truck Plans
Ford has confirmed a US$2bn investment to transform its Kentucky, US assembly plant into a facility for producing a new mid-size electric pick-up truck, planned for release in 2027.
The vehicle will start at around US$30,000 and be built on a “universal EV platform” intended to support an entire range of affordable electric models.
This move sits within a wider US$5bn EV strategy, including a US$3bn battery facility in Michigan.
Despite the job count in Louisville reducing from 2,800 to 2,200 hourly roles, Ford expects no lay-offs.
Instead, some workers will move to different roles or take up buyouts.
The company says the two projects combined will secure or create nearly 4,000 jobs.
New platform to reduce cost and complexity
At the heart of Ford’s plans is its universal EV platform, developed over three years by a skunkworks team based in Silicon Valley.
The project is led by Alan Clarke, who previously worked at Tesla.
This platform uses 20% fewer parts than a typical petrol or diesel model, relies on 25% fewer fasteners and cuts the number of workstations involved in assembly by 40%.
According to Ford, this results in a 15% faster build time.
It’s a multi-use base capable of supporting different vehicle types, including trucks, vans and SUVs.
Crucially, it’s software-defined, meaning performance improvements can be delivered through over-the-air updates rather than physical upgrades.
Ford plans to use lithium iron phosphate (LFP) batteries in place of the more expensive nickel cobalt manganese (NCM) chemistry.
These LFP cells are known for their durability, faster charging capabilities and lower cost.
In 2024, LFP cells were priced below US$60 per kilowatt hour (kWh), while NCM equivalents cost around US$100 per kWh.
The prismatic cells will serve as structural parts of the vehicle, helping lower the centre of gravity and free up interior room.
Ford says that this new electric truck will offer more passenger space than the Toyota RAV4, with extra storage available in both the front trunk and the truck bed.
Although priced for affordability, the truck is expected to accelerate from 0 to 60 mph in approximately 4.5 seconds.
Production reimagined
Ford also outlined changes to the way it assembles vehicles.
The traditional straight-line production line will be replaced with what it calls an “assembly tree”.
This means the truck will be built in three main modules – the front, the rear and a central structural battery tray, before being joined together in the final stage of production.
The modular design allows the use of large single-piece aluminium castings instead of many smaller parts.
The aim is to simplify manufacturing and improve workplace ergonomics.
Ford says this method reduces bending, twisting and reaching by more than 80% for certain tasks on the factory floor.
Alan Clarke describes the system as giving workers “pre-assembled kits” at each station to reduce handling time and space needed for storing components.
Ford Chief Executive Jim Farley refers to the shift as a “Model T moment”.
He says the aim is to create a sustainable and profitable electric vehicle business while learning from past mistakes, where launching affordable models sometimes led to plant closures and job losses.
However, he adds: “There are no guarantees.”
Facing rivals and market strain
Ford enters a competitive and difficult environment. Low-cost Chinese brands like BYD are expanding into global markets.
Meanwhile, established rivals such as Tesla and General Motors continue to push their own electric strategies.
Doug Field, Ford’s Chief EV, Digital and Design Officer, says: “It’s a bold and difficult undertaking to compete with the best in the world.”
For the year 2025, Ford forecasts as much as US$5.5bn in losses related to electric vehicles and software development.
The company has already pulled back on some of its earlier commitments, citing weak demand and hesitation from dealers due to charging infrastructure costs.
It paused US$12bn in EV investment and delayed the launch of its full-size electric truck to 2028.
A next-generation electric van has also been postponed.
