Shares of automaker Ford surged almost 4 percent in premarket trading Tuesday after the company announced plans to invest $11.4 billion in four new US plants — one for electric trucks and three for the batteries that will power the company’s EV fleet.
Ford described the project as the “largest-ever manufacturing investment at one time by any automotive manufacturer in the US.”
The investment from Ford and South Korean battery supplier SK Innovation is expected to create nearly 11,000 jobs across the four sites in Tennessee and Kentucky over the next four years, the company said Monday evening.
Ford said the investment will enable it to produce more than one million electric vehicles a year in the second half of this decade and is part of a commitment to invest at least $30 billion in electric vehicles through 2025.
The plants will support the production of electric F-Series trucks, like the new F-150 unveiled earlier this year.
Shares of Ford were up almost 4 percent to nearly $15 per share on the news.
“This is our moment – our biggest investment ever – to help build a better future for America,” Ford’s CEO Jim Farley said in a statement.
“We are moving now to deliver breakthrough electric vehicles for the many rather than the few. It’s about creating good jobs that support American families, an ultra-efficient, carbon-neutral manufacturing system, and a growing business that delivers value for communities, dealers and shareholders.”
About $5.6 billion of the total investment will go toward a new campus called Blue Oval City in Stanton, Tennessee that will be the production site for its electric F-series trucks in additon to batteries.
Another $5.8 billion will go toward two battery-manufacturing plants in Glendale, Kentucky.
Ford will invest $7 billion and SK Innovation $4.4 billion, the companies said.
“West Tennessee is primed to deliver the workforce and quality of life needed to create the next great American success story with Ford Motor Company and SK Innovation,” Tennessee Gov. Bill Lee said in a statement.
“This is a watershed moment for Tennesseans as we lead the future of the automotive industry and advanced manufacturing.”
The announcement is the latest push by the Farley-helmed Ford into the electric vehicle space and it will help the company concentrate its supply chain in the US amid a global shortage of semiconductor chips that has hit automakers hard.
Other automakers have also announced multi-billion dollar investments in their pushes to go electric and compete with upstarts like Tesla.
Ford’s rival General Motors previously announced plans to spend $4.6 billion through a joint venture with LG Chem for battery production starting in 2023.