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Ford confirmed Monday it has instantly stopped work at a $3.5 billion manufacturing unit in Michigan that was purported to make cheaper lithium iron phosphate batteries utilizing tech from China’s CATL.
“We’re pausing work and limiting spending on development on the Marshall challenge till we’re assured about our capacity to competitively function the plant,” Ford spokesperson TR Reid mentioned in an e-mail to TechCrunch. “There are a variety of issues. We haven’t been particular about what they’re, nor made any ultimate determination in regards to the deliberate funding there.”
Beneath the association that was introduced in February 2023, Ford’s wholly owned subsidiary would manufacture the battery cells utilizing LFP battery cell data and companies supplied by CATL. It’s unclear if this can be a non permanent pause or if the challenge will probably be shelved altogether.
The stoppage comes greater than every week after United Autoworkers launched a restricted strike affecting Ford, GM and Stellantis. It additionally follows an announcement in July 2023 that two congressional committees had launched investigations into the automaker’s licensing cope with CATL.
The $3.5 billion Ford had initially dedicated to investing within the manufacturing unit was purported to be a part of the automaker’s plan to pour greater than $50 billion into electrical autos globally by 2026. Ford mentioned it deliberate to ship an annual run price of 600,000 electrical autos globally by the top of this yr and a couple of million globally by the top of 2026.
The manufacturing unit — dubbed BlueOval Battery Park Michigan by Ford and the Marshall Megasite by native residents who opposed the challenge — garnered $1.7 billion in state incentives to find in Marshall, Michigan. Ford mentioned on the time the manufacturing unit would make use of 2,500 staff and manufacturing was anticipated to start in 2026.
Gov. Gretchen Whitmer was instrumental in securing the incentives bundle. In an emailed assertion a spokesperson wrote that the governor is dedicated to sustaining Michigan’s standing because the “house to world-class automakers whose iconic autos are constructed by the most effective auto staff on the planet.”
“That’s why we’ve been aggressively pursuing offers that help working women and men, whereas additionally bringing provide chains again house from abroad for the primary time and securing record-breaking funding that may assure jobs for many years,” the assertion continued. “Ford has been clear that this can be a pause, and we are going to proceed to push for profitable negotiations between the Large 3 and UAW in order that Michiganders can get again to work doing what they do greatest.”
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