Ford Motor Company (NYSE:F) announced on Monday that it is “pausing” construction of a $3.5 billion electric vehicle (EV) battery plant in Marshall, Michigan until it is confident it can run the factory competitively.
The auto giant said the move comes as it plans to limit spending for the time being, although according to a Ford spokesperson, no final decisions have been made about its investment in a new lithium iron phosphate (LFP) EV battery plant about 100 miles west of Detroit, The Detroit News reported.
The spokesperson said “a number of considerations” were at play without indicating it had to do with the ongoing United Auto Workers (UAW) strike.
The plant, named BlueOval Park Michigan, was expected to begin LFP battery production in 2026 with plans to employ 2,500 people.
The production facility was slated to produce around 35 gigawatts per hour (GWh) of new battery capacity annually, and Ford planned to manufacture the cells through a partnership with China’s CATL to use its LFP cell knowledge and services.
The media outlet noted, however, that several Republican lawmakers criticized the project, expressing concerns over Ford’s relationship with CATL.
Ford announced plans in February this year to build the plant in Marshall to make lower-cost batteries for a variety of new and existing vehicles, with Michigan Governor Gretchen Whitmer, state legislators and local officials agreeing to provide the automaker a combined $1.7 billion in public subsidies.
Ford Motor Co shares eased 0.6% to $12.50 in early Tuesday trading.
Contact Sean at sean@proactiveinvestors.com