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Ford Invests in Valencia to Support Battery Pack Assembly

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A 2.5-liter Duratrac hybrid engine being built on a Ford assembly line
Ford will build its new 2.5-liter Duratec in Valencia starting next year
Photo: Ford

Ford has announced that it will invest an additional 5.2 million euros ($6.3 million) in its Valencia operations to support its shift to electrified vehicles. Following an initial investment of 24 million euros ($29 million), the investment supports increased battery pack production for Ford vehicles. Ford will also build a new 2.5-liter Duratec hybrid engine at the plant starting next year.

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Ford Motor Company of Europe Vice President of Manufacturing Kieran Cahill calls the move “another step on Ford’s electrification journey, providing a bridge to an all-electric passenger vehicle future, and demonstrating our continuing commitment to our manufacturing operations in Valencia where we have invested around $3 billion since 2011.”

Production of the latest Duratec hybrid will kick off at Valencia late next year. The 2.5-liter Duratec will power key models including the new Kuga and Galaxy. It marks the first engine of its kind built in Europe. Ford builds the current version of the 2.5-liter Duratec hybrid at its Chihuahua Engine Plant in Mexico.

Battery pack production pushes Ford toward 2026 goal

An aerial shot of the Ford Valencia manufacturing plant in Spain
Ford Valencia plant will be key for the automaker’s zero-emissions ambitions
Photo: Ford

By increasing the assembly of battery packs in Valencia, Ford will be in a better position to support its all-electric ambitions in Europe. Earlier this year, Ford broke ground on its $1 billion Ford Cologne Electrification Center in Germany. That plant will build a new all-electric vehicle in 2023 and could build a second EV thereafter.

Ford is pushing to move its entire passenger vehicle lineup in Europe to zero-emissions capability by 2026. By 2030, Ford plans to offer an all-electric lineup. Ford is already laying the groundwork for this switch with the current Kuga Plug-In Hybrid and the recently launched Mustang Mach-E.

Earlier this year, Ford increased its global investment in electrification to $22 billion — more than twice the original amount announced in 2017.

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