Ford Scales Back $3.5 Billion Battery Plant in Michigan Amid EV Adoption Struggles
Ford is scaling back plans for a $3.5 billion battery plant in Michigan that it announced in February due to slower-than-expected EV adoption, rising labor costs, and efforts to cut costs. The plant's production capacity will be reduced by 43% to 20 gigawatt hours per year and expected employment will fall from 2,500 jobs to 1,700 jobs. Global automakers are retreating from aggressive EV expansion plans as demand has not met expectations due to high costs and supply chain and technology challenges. The plant will still aim to open in 2026 and produce lithium iron phosphate batteries, though construction was halted for two months during UAW negotiations where significant wage increases were approved.
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00:00 It's Benzinga and here's what's on the block.
00:02 Ford is scaling back plans for a $3.5 billion battery plant in Michigan that it announced
00:06 in February due to slower-than-expected EV adoption, rising labor costs, and efforts
00:10 to cut costs.
00:11 The plant's production capacity will be reduced by 43% to 20 gigawatt-hours per year, and
00:17 expected employment will fall from 2,500 to 1,700 jobs.
00:20 Global automakers are retreating from aggressive EV expansion plans as demand has not yet met
00:25 expectations due to high costs and supply chain and technology challenges.
00:29 The plant will still aim to open in 2026 and produce lithium-ion phosphate batteries, though
00:33 construction was halted for two months during UAW negotiations, where significant wage increases
00:38 were approved.
00:39 For all things money, visit Benzinga.com.
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