Ford EV Battery Plant Won’t Be Killed By Trump Bill After All

Back in late May, Ford Executive Chairman Bill Ford revealed that the automaker’s under-construction BlueOval Battery Park Michigan site was facing an uncertain future that hinged on efforts to eliminate the federal EV production tax credit. That particular plant – which has also drawn the ire of a group of local citizens – is relying heavily on those funds, and is slated to begin building lithium-iron phosphate batteries for future Ford EVs starting in 2026. However, even with its cross-town rival GM apparently working against it, it seems as if Ford won’t be giving up on BlueOval Battery Park Michigan, after all.

According to the New York Times, Ford has officially announced that it is committed to completing construction at BlueOval Battery Park Michigan and producing LFP batteries using technology licensed from China-based CATL – as originally planned – even if the production tax credit is eliminated. When Ford decided to build the plant two years ago, it did so with the expectation that at least part of the $3 billion dollar cost – roughly one quarter – would be covered by federal tax credits provided by the Inflation Reduction Act created by the Biden administration.

However, there are two bills currently in Congress – one in the House and one in the Senate – that aim to kill off the EV tax credit entirely, or at the very least, eliminate federal support for plants that utilize Chinese materials or technology. Thus, it was unclear if Ford would continue erecting its newest battery plant, or perhaps opt to back out of the project entirely, as its Executive Chairman previously eluded too. However, Lisa Drake, Ford’s vice president for technology platform programs and EV systems, has confirmed that this won’t be the case.

“We don’t want to back off on this facility,” Drake told reporters during a tour of the unfinished site this week. “When we invest, we stick behind our investments. Ford is a company that will weather the storm until we get there.” Drake added that losing the credits would have a “very material” impact on the finances of the future plant, however, adding that the company would have probably opted to build it outside of the U.S. if it hadn’t been promised financial assistance from the government. “It would really be a shame to build these facilities and then all of a sudden have to scale back on the most important part, which is people,” she said. “It’s 1,700 jobs. They don’t come around all that often.”