U.S. automaker Ford is deepening its partnership with Chinese battery manufacturer Contemporary Amperex Technology Co. Limited (CATL), with construction of a three-billion-dollar battery manufacturing facility going smoothly in Marshall, Michigan.
The facility, built by Ford, will use CATL technology under a licensing agreement. Once fully operational, it will produce lithium iron phosphate batteries for Ford's new electric vehicles, along with larger scale batteries for stationary storage.
The project is expected to employ more than 1,000 people, and as a result, local business owners are anticipating a significant boost to revenue.
"It's absolutely picked up the traffic through the town. There's definitely more people here. More people in town definitely means more people eating out and shopping locally. So it definitely is going to increase our revenue," said Scott Ladd, a local restaurant owner.
Ford is currently working to produce an electric midsize pickup truck with a starting price of roughly 30,000 dollars. The company says it's aiming to make that possible by reinventing and simplifying the production line assembly process. It also expects the CATL-licensed batteries to help reduce costs for one of the most important components.
According to observers, the push for electrification is driving massive investment from U.S. automakers like Ford, as well as incentivizing them to deepen cooperation with Chinese innovators.
"We have not seen this level of change in the auto industry for over 100 years," said Paul Eisenstein, one of the most widely published auto writers in the U.S.
"The amount of money that is required for any of the new technological changes that are sweeping through the auto industry is huge. But it's critical to have partnerships today because the costs are just too high, and there's so many things you have to bet on, you just don't know where they'll go," Eisenstein added.
People in Marshall are already excited about the prospect of new industry activity and job growth.
"It is pretty clear that if you actually get an assembly plant here, it's about the best job creator and job sustainer of any new investment. You've got to sustain it, but if you can do that, it's a terrific whole-industry builder," said Patrick Anderson, an analyst from the Anderson Economic Group.
"Marshall began to see a drop in population and in employment opportunity for folks. Getting something that would bring jobs to the community is really super important for Marshall. I'm really positive on what's happening right now," said Matt Davis, owner of a local real estate company.
As Ford's Marshall facility nears completion, its success could serve as a proving ground for a new model of U.S.-China industrial cooperation, while delivering affordable electric vehicles and clean energy storage to American consumers.
Ford's battery technology cooperation with China powers up employment in Michigan town
