Ford’s BlueOval City EV and battery manufacturing campus in West Tennessee (earlier post) begins production in 2025, will be home to Ford’s second-generation electric truck, code-named Project T3, and will be capable of producing 500,000 EV trucks a year at full production. Ford and partner SK On are investing $5.6 billion in the campus and creating approximately 6,000 new jobs.
BlueOval City under construction.
BlueOval City is designed to be Ford’s first carbon-neutral vehicle manufacturing and battery campus. BlueOval City also is a key part of Ford’s plan to scale EV production and make them more accessible to customers; the company is targeting a production run rate of 2 million EVs annually across the globe by late 2026.
Ford is developing its second-generation EV truck in tandem with the all-new assembly plant, resulting in efficiencies not possible before—such as a 30% smaller general assembly footprint than traditional plants while delivering higher production capacity.
Project T3 is short for “Trust The Truck”. The development team’s single guiding principle has been to create a truck people can trust in the digital age—one that’s fully updatable, constantly improving, and supports towing, hauling, exportable power and endless new innovations owners will want.
The assembly plant will use carbon-free electricity from the day it opens. For the first time, Ford also is using recovered energy from the site’s utility infrastructure and geothermal system to provide carbon-free heat for the assembly plant—saving about 300 million cubic feet of natural gas typically needed each year to heat similarly sized vehicle assembly plants.
The campus’ new utility system will save 50 million gallons of water each year by reducing evaporation from the site’s cooling towers. Plus, the zero-waste-to-landfill site is designed to use no fresh water for its assembly processes. Ford also intends to develop a holistic stormwater management system separate from the water table to help protect the local environment.
The 3,600-acre campus also has a fully integrated BlueOval SK battery manufacturing site. On-site, the team will build battery cells and arrays and assemble battery packs that will be delivered just across the site into the assembly plant in less than 30 minutes.
In addition, BlueOval City is developing an on-site supplier park and will have an upfit center capable of adding in dozens of Ford trucks’ most popular features—including robotically installed spray-in bedliners and integrated tool boxes before the pickups are released to dealers and customers.
To help reduce traffic congestion and emissions, the campus also has an on-site Lowe’s store supplying building materials, two construction equipment rental companies and three concrete batch plants.
Separately, Ford said that its Ford Model e business (electric vehicles) will lose about $3 billion this year. The company is maintaining its 8% EBIT margin objective by late 2026 for Ford Model e, which is tied to planned global electric vehicle production run rates of 600,000 units by the end of 2023 and two million by the end of 2026.
Ford said that although the contribution margin of Ford Model e’s first-generation EVs—representing revenue minus certain variable costs—is expected to approach break-even this year, that is more than offset on an EBIT basis by higher investments in new EV products and manufacturing capacity.