Ford downsizes EV battery manufacturing unit plan

Ford mentioned Tuesday it should 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 mission, often called the BlueOval Battery Park Michigan in Marshall; it’s additionally consistent with the corporate’s choice 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 development in EV gross sales has slowed and shoppers have turn out to be extra worth delicate.

The scaled-down model of the EV battery manufacturing unit can have a manufacturing capability 20 gigawatt-hours, reflecting a few 43% discount. The manufacturing unit, which continues to be slated to begin 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 primarily based on the capability discount, Ford will nonetheless want to speculate about $2 billion within the mission.

“Whereas we stay bullish on our long-term technique for electrical automobiles, we’re re-timing and resizing some investments. As said beforehand, we have now been evaluating BlueOval Battery Park Michigan in Marshall,” the corporate mentioned in an announcement Tuesday.