Ford plans $5.6 billion electric plant in Tennessee

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Ford plans $5.6 billion electric plant in Tennessee

The $5.6 billion campus is expected to start production of electric trucks and batteries in 2025, in partnership with Korea's SK On.

When it is completed, building supports have begun to rise from the property to build a facility that will cover six square miles and employ 6,000 workers.

The state of Tennessee has a $884 million incentive program that will create additional 21,000 indirect jobs, and the project is expected to create more than 21,000 indirect jobs, according to government officials.

Tennessee Governor Bill Lee said it was the single-largest investment in state history. Ford CEO Jim Farley said in April that the factory will build a next generation electric pickup that is different from the current F-150 Lightning.

Blue Oval City is part of a larger regional electric vehicle manufacturing investment by Ford that includes a $5.8 billion battery factory in Kentucky.

Ford is aiming to have the global capacity to build two million electric vehicles annually by 2026, which would represent a third of its output, but it has not committed to a timeframe for going all-electric in the U.S.

Ford split its business this year into the Model e division, which is dedicated to electric vehicles and Ford Blue, which is focused on internal combustion engine models and hybrids.

Farley told dealers this month they will be able to just sell Ford Blue products if they don't want to make the investments required to support EV sales.