Ford is expanding production of all-electric vehicles after deciding that rapid growth in the market means it needs to accelerate its plans.
It is investing about $900m (£682m) in new production capacity at a plant in Michigan, creating about 900 jobs.
Head of global operations Joe Hinrichs said it had “taken a fresh look” at the growth in electric vehicles.
Ford also said it would start production of autonomous vehicles in about two years.
Last year, Ford set out a long-term plan to invest about $11bn in new vehicle technologies.
Hinrichs said: “When we were taking a look at our $11bn investment in electrification, it became obvious to us that we were going to need a second plant in the not-too-distant future to add capacity for our battery electric vehicles.”