Ford's $2 bln EV investment & 5% revenue boost sparks hope for downstream aluminum amidst market turmoil

The automaker has unveiled a USD 2 billion investment in its Louisville, KY, Assembly plant, setting the stage for a lineup of next-generation, more affordable electric vehicles by 2027. This move signals optimism for the downstream aluminum industry, especially in the US region. At the heart of this transformation is the Ford Universal EV Platform, which is set to power a range of next-generation, more affordable electric vehicles by 2027.

However, Ford's push into the EV sector is not without challenges.

The automaker is contending with rising tariffs on critical materials like aluminum and steel. Ford's dependence on imported aluminum, much of it from Canada, is being tested by new trade tariffs imposed by the Trump administration, which now stand at 50 per cent on certain imports. The impact of these tariffs was evident in Ford's revised 2025 forecast, where it revealed an additional USD 0.5 billion cost due to these trade issues, bringing the total expected tariff burden to USD 3 billion.

Despite these challenges, Ford is leaning into aluminum's role in its future by adopting megacasting and aluminum unicastings for its vehicle structures. This is where Ford's USD 2 billion investments comes into play, by creating a more efficient, simplified manufacturing process that reduces reliance on multiple parts, particularly those that need to be imported.

On the jobs front, Ford anticipates the Universal EV Platform to create or secure 4,000 positions at the Louisville plant and the BlueOval Battery Park in Michigan, where USD 3 billion has already been committed to producing lithium-iron-phosphate batteries. To make room for the new system, the Louisville Assembly Plant will grow by 52,000 square feet.

Pioneered by Tesla – adopted by Honda and NOW Ford

President and CEO Jim Farley emphasised that the Universal EV Platform marks "the most radical shift in how we design and build vehicles at Ford since the Model T." A key part of this transformation will be Ford's use of aluminum "unicasting" technology for vehicle structures, signalling its leap into megacasting. This high-pressure die-casting method, long rumoured in industry circles, will bring chassis production back into Ford's fold more than a decade after the company moved U.S. casting operations to outside suppliers.

Megacasting, the game-changing manufacturing technique pioneered by Tesla and recently adopted by Honda, is now finding its way into Ford's playbook. The company has already been building out its talent pool, hiring for roles like Unicasting Tooling Engineer and Casting Process Engineer to support its new high-pressure diecasting operations. Ford calls it a "simple, efficient, flexible ecosystem," but in practice, it's their roadmap to making EVs not just cutting-edge, but accessible to more drivers than ever.

"We took a radical approach to a very hard challenge: Create affordable vehicles that delight customers in every way that matters – design, innovation, flexibility, space, driving pleasure, and cost of ownership – and do it with American workers," stated Farley.

Aluminum emerging as a player in the EV sector

According to AL Circle, the global automotive downstream aluminum market specifically for the automotive sector was valued at USD 97.86 billion in 2024. It is projected to nearly double to USD 205.24 billion by 2032, growing at a CAGR of 9.7 per cent. The growth reflects the auto industry's accelerating shift to lightweight, high-performance, and sustainable materials, precisely the advantages Ford is seeking through megacasting.

Looking ahead, the EV sector will be the biggest growth driver, with aluminum demand expected to climb to 16 million tonnes by 2035 as electrification, emissions regulations, and consumer demand for efficiency reshape the automotive landscape.

First product from Ford's Universal EV Platform

The first product to roll off Ford's Universal EV Platform will be a midsized, four-door electric pickup with a price tag of around USD 30,000, a bold move aimed squarely at making EVs more attainable. While Ford hasn't revealed the rest of the lineup, teaser graphics hint at a future spanning sedans, SUVs, and even service vans.

But this transition also comes with tough choices.

To make room for the new era, Ford will discontinue production of the Escape and Lincoln Corsair at its Louisville plant. In return, the Universal EV Platform promises leaner, smarter manufacturing, 20 per cent fewer components, 25 per cent fewer fasteners, 40 per cent fewer workstations, and an assembly process that's 15 per cent faster.

In short, Ford isn't just building cars, it's redesigning the very way it makes them.

One of the most striking innovations is Ford's shift from the traditional assembly line to a new "assembly tree." Instead of cars moving step by step in a single line, three major subassemblies, or "kits", will be built in parallel and then merged. Thanks to aluminum unicastings replacing dozens of smaller cast parts in the front and rear structures, the process becomes both simpler and faster. These two large sections will then be joined with a third module- the passenger compartment, complete with its battery deck beneath. The three pieces lock together to form the finished vehicle.

Beyond efficiency, the Ford Universal EV Production System is designed with workers in mind. By reducing twisting, reaching, and bending, it improves workplace ergonomics while modernising the build process.

Ford's 2024 result - a sign of resilience amidst tariff pressures

Analysing Ford's 2024 financial report reveals a notable year-on-year growth in both revenue and net income. The company's revenue grew by 5 per cent from USD 176.2 billion in 2023 to a robust 2024 performance. Similarly, net income rose by 1.5 per cent, from USD 4.3 billion in 2023 to USD 5.9 billion in 2024. This financial growth is particularly significant as Ford continues to grapple with the impact of tariffs on key materials, especially aluminum and steel.

The boost in Ford's earnings is largely attributed to its success in the EV market. In the US, Ford's EV sales saw a significant jump, with approximately 97,865 million units sold in 2024, compared to 72,608 million units the previous year. This uptick in EV sales highlights the growing acceptance of Ford's electric vehicles, underpinned by its investment in the Universal EV Platform, which aims to make EVs more accessible to a wider range of consumers.

Despite initial concerns about the impact of the trade war and tariff-induced material costs, Ford's positive financial results indicate that the company is navigating these challenges effectively. The growth in revenue and net income, particularly from the EV sector, reinforces the long-term viability of Ford's strategic shift toward EVs, even as it faces tariff-related headwinds.