Ford has confirmed that it’s halting building of a $3.5 million battery plant in Michigan that the automaker had targeted on simply months earlier as a key for EV affordability. 

The plant, close to Marshall, Michigan, was because of create about 2,500 jobs and make lithium-iron-phosphate (LFP) batteries, which are usually less expensive to provide than the nickel-cobalt-manganese (NCM) batteries that Ford at the moment makes use of in its EVs. When the plant was introduced, in February, Ford mentioned that the plant would make “one of many lowest-cost U.S.-produced batteries.”

That mentioned, the price of producing these cells seems to be on the core of Ford’s determination to carry off. 

Ford Mustang Mach-E at Tesla Supercharger

“We’re pausing work and limiting spending on building on the Marshall venture whereas we reassess the enterprise determination, to be assured about our capacity to competitively function the plant,” acknowledged Ford company spokesperson T.R. Reid, in a response to Inexperienced Automotive Stories late Monday, after information of the halt unfold through social media and a report from The Detroit Information. 

“There are a variety of issues,” summed Reid, in the remainder of the assertion to GCR. “We haven’t made any last determination concerning the deliberate funding.”

Ford wouldn’t say to the Detroit Information whether or not the choice had any connection to the present UAW strike, however on Tuesday, President Biden is because of assist rally placing employees in Michigan. 

Different components which will have had a task within the determination along with prices or labor embrace a reliance on China for licensing of the expertise. The plant was, nevertheless, because of be owned and run totally by Ford. 

Ford evaluating NCM and LFP battery varieties

Ford LFP battery advantages

As Ford mentioned on the time of the announcement, LFP batteries boast many benefits. They assist strengthen the availability chain as they put a lighter burden on some high-demand, high-cost supplies, whereas they are often charged from 0-100% each day, and so they’re additionally the popular alternative for bidirectional charging. However, they are often sluggish to cost in very chilly climate, and so they’re barely heavier than NCM tech. 

Tesla has been placing LFP cells within the Mannequin 3 Commonplace Vary since late 2021, and so they’ve been fairly well-received by homeowners. 

Ford LFP product introductions

The choice, Ford summed, was knowledgeable by each car use information and bottom-line value, and that LFP batteries have been sure for the Mustang Mach-E and F-150 Lightning. 

LFP Mach-E deliveries are anticipated to begin later this yr. Whereas base variations of the Tesla Mannequin 3 with LFP cells handle eligibility for the total $7,500 quantity of the EV tax credit score, variations Ford Mustang Mach-E with a LFP battery pack will qualify for a similar $3,750 EV tax credit score quantity as different present Mach-E Prolonged Vary fashions.