Ford says that it's planning to invest $2 billion in a Louisville, Kentucky assembly plant, as the carmaker looks to overhaul its production lines to produce more affordable electric vehicles.

As competitors like Tesla have slashed prices and dominated the U.S. market for electric vehicles, Ford's EV division has lost $12 billion over the last two-and-a-half years, as well as $2.2 billion in the first half of 2025 alone. The company's EV sales also fell by 12% in the first six months of the year.

In an effort to get its EV division back on track, Ford announced on August 11 that it has developed a new manufacturing process designed to speed up production times and allow the company to offer electric vehicles to consumers at lower prices, The New York Times reports. That will reportedly start with production of a four-door EV pickup truck priced at $30,000, with the model scheduled to roll off assembly lines at Ford's Louisville plant in 2027.

“We tore up the moving assembly line that you see here today and we came up with a brand-new concept,” said Ford CEO Jim Farley during a press conference at the Louisville facility. Farley went on to tout the initiative as "the most radical redesign of how we manufacture cars since the Model T." 

Ford will shift from using one long assembly line for EV pickup trucks, and instead use three. One line will build the front end of the EV, the second will build the back, and the third will handle the battery pack and cab. Those sections will then merge into a single line to join the three pieces, in a process the company says will cut 15% off assembly times.

Ford is also hoping to save on battery costs by building a new $3 billion plant in Marshall, Michigan, which will produce cells that use lithium, iron and phosphate (LFP), instead of more expensive minerals such as nickel and cobalt. LFP cells have grown in popularity across the auto industry, as carmakers have sought cheaper alternatives to lithium-ion batteries. General Motors announced a partnership with LG Energy Solution in July to upgrade a Spring Hill Tennessee plant to produce LFP batteries, while Tesla and Rivian have both been using the cells in their less expensive EV models for years.