Under a new agreement inked between Ford and LG, the companies will move production of EV batteries for the Ford Mustang Mach-E from Poland to its Michigan facility in 2025. This (of course) has everything to do with the IRA and tax credits.

“To capitalize on competitive market conditions,” the new agreement moves Ford Mach-E battery production to the US, where those batteries can take advantage of America’s various incentives. Over in Europe, LG plans to take advantage of incentives over there by supplying a total of 109 GWh of batteries to Ford for its electric commercial vans starting in 2026.

“These agreements attest to our experience and expertise in powering commercial vehicles with innovative battery technologies designed to handle extreme user environments,” said David Kim, CEO of LG Energy Solution. “Capitalizing on our local production capacity, we will secure leadership in the European market and deliver unmatched values to our customers through advanced battery technologies that effectively address diverse needs.”