Ford adjusts plans for Michigan battery plant as EV demand falls and costs rise

Ford Motor Company is scaling back its plans for a $3.5 billion battery plant in Michigan due to slower-than-expected consumer adoption of electric vehicles (EVs), rising labor costs, and the need to cut expenses. The company is reducing production capacity by 43% and expected employment from 2,500 to 1,700 jobs. This decision is part of Ford's broader strategy to cut or delay about $12 billion in previously announced EV investments. The move reflects a recent trend of automakers globally retreating from EVs due to challenges with supply chains, battery technologies, and higher costs. Despite the downsizing, Ford still plans to open the plant in 2026 and believes licensing technology from Chinese battery manufacturer CATL is a better business strategy than importing batteries from overseas.