TDR Capital International - Ford Cuts EV Battery Plant Plans as Demand Falls and Labor Costs Rise

KOWLOON, Hong Kong - Nov. 22, 2023 - PRLog -- The automaker said on Tuesday that it will be "right-sizing" the BlueOval Battery Park Michigan facility in Marshall as part of its "re-timing and resizing" of select EV initiatives. Ford stated that the facility's output capacity will be reduced from 35 gigawatt hours to 20 gigawatt hours.

Furthermore, instead of the initial projection of 2,500 people, only 1,700 would be employed there. In 2026, BlueOval Battery Park Michigan is anticipated to start producing lithium iron phosphate (LFP) battery cells.

The decision is part of Ford's strategy, revealed last month, to cancel or postpone the construction of nearly $12 billion in additional EV production capacity. This included the postponement of the development of another battery facility in Kentucky.

Spokesman Mark Truby noted that, while the firm remained optimistic about EVs and its long-term EV plan, it was evident that growth had not been as rapid as expected. Truby went on to say that the UAW contract played a role in the Michigan factory decision. The business previously stated that the arrangement will raise the price of a freshly produced car by $850 to $900.

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