Ford Motor Company has said that every vehicle it manufactures in Michigan will be assembled using solar and other renewable energy sources by 2025, in an effort to lower its emissions.
Michigan-based Ford has signed a renewable energy purchase pact with local provider DTE Energy , under which the utility firm will add 650 megawatts of new solar energy in the state for the carmaker.
Ford operates three plants in Michigan at Dearborn, Wayne and Flat Rock that build the F-150, Mustang, Ranger and Bronco models.
The latest announcement follows that last month by the car giant regarding a series of deals to accelerate its shift to electric vehicles, including sourcing battery capacity and raw materials from overseas.
The deals are part of Ford’s push for annual electric vehicle (EV) production rate globally to reach 600,000 vehicles by late 2023 and more than 2 million by the end of 2026.
Ford said it expects a compound annual growth rate for EVs to top 90% through 2026, more than doubling the forecast industry growth rate.
In March, Ford also boosted its planned spending on EVs through 2026 to $50 billion from its prior target of $30 billion, and reorganised its operations into separate units focused on EVs and gasoline-powered vehicles with Ford Model e and Ford Blue, respectively.
The Michigan-based company also said at the time that its EV business would not be profitable until the next-generation models begin production in 2025.
As part of its push to boost capacity, Ford said it is adding lithium iron phosphate (LFP) cell chemistry for EV batteries to its portfolio, alongside nickel cobalt manganese (NCM). Ford said it has secured all of the 60 gigawatt hours (GWh) of cell capacity needed to support the 600,000 run rate.
Ford said it has now sourced about 70% of the battery cell capacity it needs to achieve its annual production rate of more than 2 million by late 2026.