Ford Warns of Possible Battery Job Losses if US EV
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Posted On: 06/25/2025 4:37:05 PM
Ford Warns of Possible Battery Job Losses if US EV Tax Credits are Scrapped
Ford Motor has warned that jobs could be lost at its EV battery in Michigan if Congress pegs back the existing subsidies to firms manufacturing clean energy products. The manufacturing plant is slated to start operating next year and anticipates hiring 1,700 employees when production commences.
Ford has invested $3 billion to establish the battery facility which is intended to manufacture about 20GWh (gigawatt-hours) of LFP batteries (lithium-ion phosphate) every year.
The production facility, found approximately 100 miles to the west of Detroit, was the subject of federal scrutiny due to Ford Motor’s agreement with CATL, a Chinese firm that is the biggest battery maker in the world. Under the agreement, Ford would access LFP battery tech from the Chinese firm.
Ford asserts that it has full ownership and control of the Michigan plant, and the facility would make LFP batteries specifically for the auto industry. This would be the first such facility on American soil.
The American firm is concerned that ending the manufacturing tax credit contained in the Inflation Reduction Act would make it lose credits worth approximately $2.3bn in the years 2026 to 2029 as anticipated based on the existing law. The incentives could be changed or altogether removed given the ongoing Congressional discussions of the proposed 2025 budget that the President insists must be passed before July 4.
It should be noted that the existing law had been passed with bipartisan support and built on previous efforts to bolster the manufacturing sector in the U.S. Manufacturers base on stable policies and regulations to make their long term plans, and Ford is rightly concerned that an existing policy which, to a degree, influenced their decision to establish the manufacturing plant now teeters on the brink of being scrapped just before production begins.
The rationale underpinning the existing incentives was three-pronged; creating energy independence, bolstering economic competitiveness and attaining environmental goals. These aspirations now seem to be falling victim to the desire of the current administration to undo the work of the previous federal administration, especially those related to promoting clean energy and electric vehicles.
The U.S. is working to catch up and even surpass the dominance of China in various technologies, such as EV battery manufacturing. Ford had opted for a logical path of obtaining battery tech from China and domesticating production in order to create jobs, establish reliable supply chains and onshore manufacturing.
The changes being mooted in the budget being discussed put Ford and other companies in a tight spot that could put the country at a disadvantage relative to its biggest competitor, China. You can bet that these developments are likely to be of concern to other companies like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) that were eyeing the burgeoning U.S. battery making industry as a potential market for the minerals they focus on producing in the years to come.
Please see full terms of use and disclaimers on the Rocks & Stocks website applicable to all content provided by R&S, wherever published or re-published: https://RocksAndStocks.news/Disclaimer
Ford Motor has warned that jobs could be lost at its EV battery in Michigan if Congress pegs back the existing subsidies to firms manufacturing clean energy products. The manufacturing plant is slated to start operating next year and anticipates hiring 1,700 employees when production commences.
Ford has invested $3 billion to establish the battery facility which is intended to manufacture about 20GWh (gigawatt-hours) of LFP batteries (lithium-ion phosphate) every year.
The production facility, found approximately 100 miles to the west of Detroit, was the subject of federal scrutiny due to Ford Motor’s agreement with CATL, a Chinese firm that is the biggest battery maker in the world. Under the agreement, Ford would access LFP battery tech from the Chinese firm.
Ford asserts that it has full ownership and control of the Michigan plant, and the facility would make LFP batteries specifically for the auto industry. This would be the first such facility on American soil.
The American firm is concerned that ending the manufacturing tax credit contained in the Inflation Reduction Act would make it lose credits worth approximately $2.3bn in the years 2026 to 2029 as anticipated based on the existing law. The incentives could be changed or altogether removed given the ongoing Congressional discussions of the proposed 2025 budget that the President insists must be passed before July 4.
It should be noted that the existing law had been passed with bipartisan support and built on previous efforts to bolster the manufacturing sector in the U.S. Manufacturers base on stable policies and regulations to make their long term plans, and Ford is rightly concerned that an existing policy which, to a degree, influenced their decision to establish the manufacturing plant now teeters on the brink of being scrapped just before production begins.
The rationale underpinning the existing incentives was three-pronged; creating energy independence, bolstering economic competitiveness and attaining environmental goals. These aspirations now seem to be falling victim to the desire of the current administration to undo the work of the previous federal administration, especially those related to promoting clean energy and electric vehicles.
The U.S. is working to catch up and even surpass the dominance of China in various technologies, such as EV battery manufacturing. Ford had opted for a logical path of obtaining battery tech from China and domesticating production in order to create jobs, establish reliable supply chains and onshore manufacturing.
The changes being mooted in the budget being discussed put Ford and other companies in a tight spot that could put the country at a disadvantage relative to its biggest competitor, China. You can bet that these developments are likely to be of concern to other companies like Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) that were eyeing the burgeoning U.S. battery making industry as a potential market for the minerals they focus on producing in the years to come.
Please see full terms of use and disclaimers on the Rocks & Stocks website applicable to all content provided by R&S, wherever published or re-published: https://RocksAndStocks.news/Disclaimer
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