Ford putting a hold on the construction of its $3.5 billion EV battery plant in Marshall, Michigan. The decision was made in order to cut short the spending for the time being. According to Ford spokesperson, T.R Reid who told The Detroit News recently on Monday. “We’re pausing work, and we’re going to limit spending on construction at Marshall until we’re confident about our ability to competitively run the plant.”
As per Reid, so far, there is no final decisions have been made with respect to the planned $3.5 billion investment. The same was made to build a new lithium iron phosphate (LFP) EV battery plant in the area. He also stated that the pause in construction would begin Monday. And “a number of considerations” were at play without revealing it had to do with the under-process United Auto Workers (UAW) strike.
BlueOval Park Michigan start LFP production by 2026
The plant “BlueOval Park Michigan” was anticipated to start LFP battery production in 2026 with the intention to employ 2,500 people. While LFP batteries present a cheaper alternative to NCM. On the same, Ford mentions that will help the company “contain or even further reduce EV prices.”
Also, even much ahead of when the plant was supposed to open. Ford came up with LFP batteries on the Mustang Mach-E this year. Whereas, the F-150 Lightning is all set to adopt them in 2024.
At the same time, the new Michigan plant was expected to make around 35 GWh of new battery capacity yearly. This is responsible for powering approximately 400,000 future Ford EVs. Again, Ford also intends to develop the cells via a partnership with China’s CATL. This is by using its LFP cell experience and services.
Notably, the plant would be the first LFP battery facility in the US that significantly raises domestic production. However, various Republican lawmakers criticized the project, as they revealed their concerns over Ford’s relationship with CATL. On the other hand, at this point, it is unclear whether the construction pause will impact Ford’s coming-time EV production plans.