Ford Proceeds With $3 Billion EV Battery Plant Despite Political Challenges

Ford is moving forward with its $3 billion EV battery plant in Michigan despite political pushback and the potential loss of key U.S. tax credits that make the project financially viable. The company’s strategy relies heavily on technology licensed from China’s leading battery producer, CATL, which aims to bolster domestic manufacturing capabilities and re-shore expertise that was previously sent overseas. Lisa Drake, Ford’s vice president of technology platform programs and EV systems, highlighted the importance of maintaining these tax subsidies, especially as EV demand has slowed. The production tax credits are crucial for Ford to continue scaling the project, which could lead to the creation of 1,704 jobs. However, the Republican-controlled Senate is considering a budget bill that could rewrite the terms of EV tax credits, with the House version effectively ending eligibility for manufacturers using Chinese licensing agreements.