Ford halts $3.5 billion EV battery plant construction

Ford announced that it would temporarily halt the construction of its $ 3.5 billion electric vehicle battery plant in Michigan due to an on-going strike and increased scrutiny by Republican lawmakers of its Chinese partner. Nevertheless, a spokesperson for Ford stated that the decision concerning the $ 3.5 billion battery plant was not connected to the on-going strike but rather stemmed from concerns about the plant's economic feasibility. TR Reid, a spokesperson for Ford, made the announcement and mentioned, "We're putting a hold on the work and cutting back on construction expenditures for the Marshall project until we are confident about our ability to competitively run the plant. We haven't reached any final conclusions regarding the investment in the plant there." The proposed Ford plant near Marshall, Michigan, had the expectation of providing employment for approximately 2,500 workers and manufacturing sufficient batteries to power approximately 400,000 electric vehicles annually. In February of this year, Ford had unveiled plans for the Michigan plant as a means to diversify its battery portfolio, moving away from nickel cobalt manganese (NCM) batteries, which are expensive to produce due to the scarcity of raw materials. Ford had announced its intention to collaborate with its Chinese partner, Contemporary Amperex Technology Co., to manufacture lithium iron phosphate batteries starting in 2026.