Ford stated Tuesday it would downsize its plans to construct a manufacturing unit in Michigan that makes cheaper lithium iron phosphate batteries utilizing tech licensed from China’s CATL. The choice comes two months after Ford paused the manufacturing unit undertaking, generally known as the BlueOval Battery Park Michigan in Marshall; it’s additionally consistent with the corporate’s resolution to delay about $12 billion in deliberate investments on EVs, together with building of a second battery plant with three way partnership accomplice SK On.
Ford, together with different automakers, have adjusted manufacturing timelines and manufacturing unit plans as the speed of progress in EV gross sales has slowed and shoppers have develop into extra worth delicate.
The scaled-down model of the EV battery manufacturing unit can have a manufacturing capability 20 gigawatt-hours, reflecting a couple of 43% discount. The manufacturing unit, which continues to be slated to start out battery cell manufacturing in 2026, will now make use of an estimated 1,700 individuals, down from the two,500 jobs. Utilizing back-of-the envelope math based mostly on the capability discount, Ford will nonetheless want to take a position about $2 billion within the undertaking.
“While we remain bullish on our long-term strategy for electric vehicles, we are re-timing and resizing some investments. As stated previously, we have been evaluating BlueOval Battery Park Michigan in Marshall,” the corporate stated in an announcement Tuesday.