Ford is looking to use technology developed by Chinese battery company CATL at its electric vehicle (EV) factory in Michigan.
The $3.5 billion (£2.8bn) facility will be entirely owned by Ford – but the carmaker will pay to use CATL’s techniques of making lithium-ion phosphate batteries.
It claims that these batteries are cheaper to make than the EV batteries common today; which include manganese, nickel and cobalt in their makeup.
Some of the cars Ford already produces will now start to have CATL battery technology installed for the future – including the Mustang Mach-E and F-150 truck.
On the company’s decision, Marin Gjaja, Chief Customer Officer, said: “A more affordable battery will drive higher EV adoption.”
It is still not confirmed whether the Chinese will veto the licensing of its technology abroad and contracts are yet to be finalised.