Ford Warns Federal Tax Credit Cuts Imperil Michigan Battery Plant

Ford Motor Co. Executive Chair Bill Ford has warned that the proposed House tax bill, which could eliminate production tax credits for electric vehicle batteries using Chinese technology, threatens the viability of Ford's $2 billion battery factory under construction in Marshall, Michigan. The plant, which uses technology from Chinese battery maker CATL, is expected to create 1,700 jobs and is a key part of Ford’s EV strategy. Ford emphasized that the company made significant investments based on existing policies and argued it would be unfair to change those rules midstream, potentially imperiling the plant and associated jobs. While the House bill has passed, the Senate still must address it, with Democrats opposing the changes and some Republicans supporting them to save taxpayer money. The downsizing of the Marshall project, including reduced state incentives and job cuts, reflects revised expectations for EV market growth and has drawn scrutiny amid strained US-China relations. Ford plans to advocate for protecting the tax credits to ensure the plant’s completion and the economic benefits it promises for the region.