Ford commits to $5 billion investment for EV production at Louisville plant
The Louisville Assembly Plant will transition to an EV-only operation, utilising new manufacturing techniques to address significant financial losses in Ford’s electric vehicle division.
Ford has announced that production of its $28,000 Fathom electric pickup truck will commence at the Louisville Assembly Plant in the first quarter of 2027. The vehicle, built on the company’s new Universal Electric Vehicle Platform, represents the culmination of a $2 billion overhaul of the Kentucky facility. The conversion from internal combustion engine manufacturing to an EV-only plant was completed in under a year, involving the removal of thousands of tons of heavy machinery.
The initial vehicles produced will be prototypes, with factory workers in Louisville collaborating with teams from Ford’s New Model Product Development Center in Dearborn, Michigan. The same operators involved in the design phase will participate in the production process, utilising a new assembly tree process that splits the vehicle into three sections: the front clip, rear clip, and battery deck. This approach allows more operators to work simultaneously, potentially speeding up production by up to 15 per cent.
Ford is investing a total of $5 billion across the Louisville factory and its BlueOval Battery Park in Michigan, a project expected to create 4,000 new jobs. The manufacturing process employs large unicasting to create the front and rear sections, replacing dozens of stamped and welded parts. Additionally, a software module flash station enabled by private 5G allows for quality tests and software updates as vehicles move down the assembly tree, a shift from previous methods where updates occurred after assembly.
The Fathom is the first vehicle to utilise Ford’s Universal Electric Vehicle Platform, a system designed to maximise aerodynamic range and reduce production costs. Ford has described the initiative as a potential "Model T moment" for the 123-year-old company, aiming to revolutionise its manufacturing processes. The Louisville Assembly Plant, which is over 70 years old, previously manufactured gas-powered vehicles including the Ford Escape and Lincoln Corsair.
This strategic pivot comes as Ford seeks to address significant financial challenges within its electric vehicle division. The company reported losses of over $5 billion on EVs and software in 2024 and $4.8 billion in 2025. Ford previously cancelled the F-150 Lightning, a truck once considered a flagship EV product, as the automaker restructures its approach to the electric market.
