DETROIT -- Global car brand Ford will partner with China's Contemporary Amperex Technology, the world's largest battery company, on its new battery plant project in the U.S. state of Michigan.

The move received a boost earlier this year after Ford Motor Company announced that the BlueOval Battery Park Michigan -- with 3.5 billion U.S. dollars of investment -- will start to produce lithium iron phosphate (LFP) batteries by 2026.
The automaker says the factory, in the city of Marshall, will initially provide about 2,500 manufacturing jobs.
The all-new battery production facility will add approximately 35 gigawatt hours per year of new battery capaity, enough to power about 400,000 future Ford Electric Vehicles (EVs).

"This plant is going to be key for Ford, because it's trying to challenge Tesla as the number one electric vehicle producer. They want to get up to two million EVs globally by 2026. So with all those EVs they're going to need a lot of batteries. This new plant is really going to go a long way to help them reach their goals," said Michael Martinez, a journalist at Automotive News.
Ford will license technology and contract services from Contemporary Amperex Technology. The plant is expected to reduce the cost of batteries for Ford's EV range.

"Anytime you can insource the production of something instead of importing it from another country, that's gonna save you a lot of time and costs," Martinez said.

The new plant is expected to have a significant economic impact in Michigan. The 2,500 jobs estimated to pop up appear to be welcome news for the surrounding business community.

A hardware store at the corner of the street looks nothing extraordinary. But legend has it that Henry Ford, founder of the brand, once stopped at that very location in 1909 for auto repairs.

Its operator Mark Walker says he is excited at the prospect of the new factory.

"There'll definitely be a boost to the local economy, with more people coming in, not only just during construction, but even once the project is complete. They will be working here, shopping here, living here. And the more people that there are, the more foot traffic you have, the better your business is going to be," he said.

The news was announced in February and is seen as a big win for Michigan, the home state of Ford. The company had also looked at Canada and Mexico as alternatives to the site.

"Michigan is obviously the home of the auto industry, but in certain circles it can seem as sort of the old stodgy auto industry that is behind the times. And they're trying to reinvent the state to show that hey, they can attract jobs, they can attract the talent needed for this next generation," said Martinez.

Not all residents are pleased with the news, as some oppose turning farmland into an industrial site. But for others, and for Ford, this region is gearing up for a significant step towards its future.