Ford Motor Company announced a $2.3 billion investment in expanding its electric vehicle production at two U.S. plants, coinciding with heightened trade disputes involving former President Donald Trump and international automotive suppliers. The move underscores a strategic pivot toward domestic supply chains amid shifting trade policy dynamics.
- Ford committed $2.3 billion to expand EV production at two U.S. plants
- Goal: 1 million annual EVs produced domestically by 2027
- 75% of supply chain components to be sourced within 250 miles
- Trump proposed 35% tariff on imported EV components in January 2026
- Ford’s stock rose 6.2% following the announcement
- U.S. Department of Commerce reviewing $1.1 billion in battery supply grants
Ford Motor Company has committed $2.3 billion to upgrade its Rouge Complex in Dearborn, Michigan, and its Flat Rock Assembly Plant in southeastern Michigan, with the goal of increasing annual EV output by 40% by 2028. The expansion includes new battery assembly lines and automation upgrades, supporting Ford’s plan to produce 1 million electric vehicles annually in the U.S. by 2027. This investment comes as trade tensions between the U.S. and several key automotive manufacturing nations have intensified. Former President Donald Trump has publicly criticized the reliance on imported components, advocating for tariffs on vehicles and parts sourced from countries including Mexico, Germany, and South Korea. In January 2026, Trump announced a proposed 35% tariff on imported electric vehicle components, citing national security concerns and domestic job protection. The new Ford facilities are expected to create 1,800 new manufacturing and engineering jobs, with 75% of the supply chain components sourced from within 250 miles of the plants. This localized approach aims to reduce exposure to international trade disruptions. Meanwhile, Ford’s stock rose 6.2% in early trading on January 15, 2026, reflecting investor confidence in the company’s domestic-focused strategy. Automotive suppliers such as LG Energy Solution and SK On are preparing to expand U.S. battery production in response to the shifting policy environment. The U.S. Department of Commerce is now reviewing applications for $1.1 billion in federal grants to support domestic battery material refining, with Ford among the applicants. The broader market impact includes increased pressure on foreign automakers operating in the U.S., particularly those with significant import volumes like Toyota and BMW.