Ford Motor Co. said Monday that it will invest $3.5 billion in a new lithium iron phosphate (LFP) battery factory in Marshall, Michigan.

In addition to nickel cobalt manganese (NCM), LFP is the second battery chemistry the company will offer, Ford said, and will allow diversification of its battery supply chain, as well as quicker scaling of its production capacity, making electric vehicles (EV’s) more affordable and accessible.

Ford said it is the first automaker to commit to both NCM and LFP technology and that the factory will be the first automaker-backed LFP plant.

LFP batteries, the company said, are durable, tolerate frequent charging and yet use lower-cost materials. Ford will incorporate the batteries in multiple pickup and passenger vehicle EV models starting this year with the Mustang Mach-E.

Production at the new BlueOval Battery Park Michigan plant in Marshall, the company said, is scheduled to begin in 2026.