Ford's Battery Factory Moves Forward Amidst Tax Incentive Uncertainty

Ford Motor Company plans to open a $3.5 billion EV battery plant in Michigan, even as Congress considers eliminating Biden-era tax subsidies that initially made the project financially feasible. The factory, known as BlueOval Battery Park Michigan, is expected to employ at least 1,700 workers and produce enough battery capacity to power approximately a quarter of a million electric vehicles annually.

With an annual production capacity of 20 GWh, Ford's battery plant could receive a $900 million tax credit under current legislation. However, if Congress passes the policy bill championed by President Trump and the House, the factory may become ineligible for federal incentives.

Despite the uncertainty surrounding tax breaks, Ford is pushing forward with its strategic commitment to American manufacturing and a hedge against volatile international supply chains. The company aims to have the factory operational by 2026, producing lithium iron phosphate batteries for a new generation of more affordable electric vehicles.

Views:109