Ford's plans for a lithium iron phosphate (LFP) battery plant in Michigan may be at risk due to potential changes in tax credits.
Threats to American Factories
Ford is building a $3 billion plant intended to produce 20 gigawatt-hours of batteries and create 1,700 jobs by 2026. However, slower electric vehicle sales have forced the company to scale back investments to about $2.2 billion and reduce job creation from 2,500 to 1,700.
Statements from Ford Leadership
Ford's executive chairman, Bill Ford, expressed concerns about potential cuts to manufacturing tax credits. "We built the business case for Marshall around that," he stated, emphasizing the importance of maintaining terms for investments already made.
Challenges for Other Battery Manufacturers
Other manufacturers like Automotive Energy Supply Corp. (AESC) have also faced difficulties. The company has halted construction on a second U.S. plant due to increased import tariffs. This has occurred amid a cooling EV demand and changes in policy.
Ford's plans for the battery plant in Michigan remain at risk due to the potential changes in tax credits. If the project collapses, it could negatively affect all aspects of battery production in the U.S.
