Locals Relieved That Ford EV Battery Plant Will Survive

For a while, the future of the under-construction Ford BlueOval Battery Park Michigan seemed to be in limbo, with Executive Chairman Bill Ford casting a bit of doubt on whether or not the site would wind up being completed amid efforts to kill off the federal EV production tax credit. Ultimately, Ford decided to move forward no matter what happened with the tax credit, which makes sense after the automaker invested a whopping $3 billion in the plant – and that fact apparently comes as a bit of good news for some of those near it in Marshall, Michigan, too.

“We are thrilled to hear that President Trump and Congress came together to preserve the pro-growth federal tax policies that ensure families and businesses across southwest Michigan and the state will continue to benefit from Ford’s investment in BlueOval Battery Park,” said James Durian, CEO of Marshall Area Economic Development Alliance, according to The Manchester Mirror. “When Ford’s facility begins production next year, it will bring back our supply chain to the United States, which will make our country less reliant on – and more competitive with – foreign countries like China.”

As Ford Authority previously reported, Ford will indeed be eligible for federal EV production tax credits thanks to the revised budget bill that recently passed through the Senate and House. The qualifying criteria now pertains to parties that have “effective control” of such partnerships, which is the case with Ford. The Blue Oval will own and operate BlueOval Battery Park Michigan, building lithium-iron phosphate batteries there using technology licensed from China-based CATL.

The newly revised 45X Advance Manufacturing Production Credit, as it’s known, will provide companies with $35 per kWh for battery cells and $10 per kWh for modules, though EV batteries built at those facilities must contain 60 percent U.S. content in 2026, a figure that increases to 85 percent in 2030. Ford expects to crank out 20 GWh annually, meaning that the credit could be worth tens of millions of dollars to it each year.