2023-09-26 01:40:31
© Reuters. Ford stops construction of battery factory in Michigan, which would use Chinese technology
Ford (NYSE:) Motor is halting construction of a $3.5 billion battery factory in Marshall, Michigan, where it planned to produce low-cost cells using technology from Chinese manufacturer Contemporary Amperex Technology (CATL).
The U.S. automaker said on Monday it was halting work and limiting spending at the plant until it is confident in its ability to operate it competitively. The shutdown takes effect immediately and the company has not yet made any final decision on the planned investment.
The unusual move comes as Ford faces months of scrutiny from lawmakers over its work with the Chinese battery maker. The factory itself would be owned and operated by Ford.
Several Republican-led committees in the House have opened investigations into the deal and the project, arguing it would allow Chinese dominance of the U.S. auto industry.
CATL is one of the world’s largest manufacturers of electric vehicle batteries, and Ford officials sought to draw on the company’s expertise to build battery cells at the factory, using a chemical that would reduce production costs. The Michigan plant was expected to create 2,500 jobs.
Low-cost, factory-produced batteries have been key to Ford’s strategy to reduce electric vehicle prices. Ford had planned batteries using CATL technology to power its Mustang Mach-E electric SUV and F-150 Lightning EV pickup truck.
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