Ford to invest $5 billion in EV production. Here's what to know.

Ford is investing $5 billion to change the way it makes electric vehicles, a move the automaker says will allow it to manufacture models starting at $30,000 — far less than the current average price for an EV.

The Dearborn, Michigan-based company on Monday said it will invest $2 billion to modernize its Louisville Assembly Plant and another $3 billion to build a new battery plant in Michigan, part of its push to produce more affordable EVs.

The company unveiled its new "universal EV platform" at a Monday event, with Ford CEO Jim Farley calling it "the most radical change on how we design and how we build vehicles at Ford since the Model T," which Ford introduced in 1908.

According to Ford, the new assembly line will be structured more like an "assembly tree," with three different lines that converge into one, rather than a single assembly belt.

"This way of building a vehicle, we're confident, is the first time anyone's done this anywhere in the world," said Doug Field, Ford's EV chief of digital and design, at Monday's event.

The company said the design will lead to a quicker, smoother assembly process and improve ergonomics for employees through a less obstructive layout.

The first product of this new production system will be a four-door midsize truck, which will debut in 2027. Farley said on Monday that the new vehicle will accommodate five people and feature a "frunk" — a front storage compartment — as well as a pickup truck bed.

The vehicle will start at $30,000. By comparison, the average price for a new electric vehicle in July was about $56,000, according to Kelley Blue Book

Field touted the new vehicle's charging capabilities, referring to the truck as a "mobile power plant."

"Outlets in the back can give you high power and let you plug in anything from tools to a refrigerator, and it can provide backup power for your home," he said.

The midsize electric truck could be produced up to 40% faster than other vehicles at the Louisville Assembly Plant due to the new process, Ford said.

In another effort to lower costs, the auto company is also reducing the number of components that go into each car. Vehicles produced on the "universal EV platform" will have 20% fewer parts than a traditional vehicle, Ford said.

The company will also use smaller cobalt and nickel-free batteries that will allow it to make "cost gains," according to a video shared by Ford.

• Ford Motor Company
• Jim Farley
• Electric Vehicles
• Ford F-150
• Auto Industry