Ford Motor Co. (NYSE:F) is set to resume construction on its Michigan electric vehicle battery plant, which was postponed two months ago due to a strike by the United Auto Workers union. However, in response to slowing growth in electric vehicle (EV) sales, the automaker plans to scale back the factory, reducing the number of anticipated jobs from 2,500 to 1,700 and lowering the annual battery cell output from 400,000 vehicles to approximately 230,000.
The plant, originally projected to cost $3.5 billion, was put on hold in late September during a strike that affected targeted assembly plants operated by Ford, General Motors, and Stellantis. The strike concluded last week with workers at all three companies voting to ratify new agreements.
Ford spokesperson Mark Truby confirmed on Tuesday that the company had considered growth forecasts for EV sales, its EV product plans, and the factory’s sustainability in making the decision to move forward. The factory, located in Marshall, about 100 miles west of Detroit, will now open in 2026, adhering to the original timeline set when the project was announced in February.
The facility will produce batteries using lithium-iron-phosphate (LFP) chemistry, which is more cost-effective than the nickel-cobalt-manganese chemistry commonly used in many EV batteries. Consumers will have the option to choose between a battery with lower range and cost or pay more for higher range and power.
Unlike Ford’s other battery plants, which are joint ventures, the Marshall factory will be a fully owned Ford subsidiary staffed by Ford workers. Contemporary Amperex Technology Co. Ltd. (CATL) from China, renowned for its lithium-iron-phosphate expertise, will supply technology, equipment, and workers.
While U.S. electric vehicle sales continue to grow, the rate has slowed compared to last year, leading automakers to adjust their battery and assembly plant construction plans. Ford’s scaled-back Michigan plant is part of the company’s broader adjustments in response to the changing landscape, including the delay of plans for a joint-venture EV battery factory in Kentucky.
Despite the adjustments, Ford remains optimistic about the future of EVs. Stacey LaRouche, press secretary for Governor Gretchen Whitmer, emphasized the positive impact on the economy, bringing 1,700 new jobs and billions of dollars in investments to Michigan. Ford’s decision aligns with the broader trend as automakers navigate the evolving landscape of electric vehicles and respond to market dynamics.
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Author Stephanie Bédard-Châteauneuf 
