Work on $3.5bln Ford EV battery plant in Michigan put on hold
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A Ford spokesperson confirms the company is limiting spending on construction on the Marshall project until it's confident about its ability to competitively operate the plant.
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Ford Motor Company's logo is seen on the side of the building at the unveiling of their new electric F-150 Lightning outside of their headquarters in Dearborn, Michigan on May 19, 2021 (AFP)
Ford is pausing construction of a $3.5 billion plant in Michigan to review the company's ability to competitively operate the facility, a company spokesperson told Sputnik.
"Yes, that’s accurate," the Ford spokesperson said about plans to halt construction of the new plant.
"We’re pausing work and limiting spending on construction on the Marshall project until we’re confident about our ability to competitively operate the plant," he added.
In February, Ford announced the project in Marshall, Michigan, as a way to diversify its battery profile away from its current exclusive use of nickel cobalt manganese (NCM), which is costly to produce because of raw material scarcity.
Ford said it would work with the Chinese company Contemporary Amperex Technology Co. to manufacture lithium iron phosphate batteries beginning in 2026 at the Marshall plant.
The technology involves less expensive raw materials and can tolerate more frequent and faster charging than NCM batteries, the company said at the time.
The auto giant said it is targeting an annual global output of 600,000 electric vehicles by end-2023 and two million by the end of 2026.
The company's decision comes amid a growing strike by unionized auto workers at Ford, General Motors, and Stellantis.
On Friday, the US auto workers union expanded a strike against two of Detroit's "Big Three" automakers and invited President Joe Biden to support workers on the picket line.
UAW President Shawn Fain announced a strike of all 38 US parts and distribution centers at General Motors and Stellantis, where negotiations are stalled. He did not expand the stoppage at Ford, which has offered important concessions since the strike was launched a couple of weeks ago.
Fain pointed out that Ford had improved earlier proposals by reinstating a cost-of-living measure that had been suspended in 2009. The company also offered an enhanced profit-sharing system and granted the union the right to strike over plant closures.
"We're not done at Ford," the UAW President said, but "we do recognize that Ford is serious about reaching a deal."
Ford was also criticized by congressional Republicans over its plans to use Chinese technology to manufacture its electric batteries at the new plant.
In August, President Joe Biden signed an executive order restricting US investment in China due to national security concerns.
According to the spokesperson, there are a number of considerations on this matter, but no final decision has been made about the future of the project.
Ford planned to open the new electric battery plant by 2026, employing some 2,500 workers. The project could make Ford the first automaker to produce next-gen lithium, iron, and phosphate batteries in the United States.
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