Ford Suspends Construction At $3.5B EV Battery Plant Amid GOP Scrutiny Over China Ties

Ford Motor Company F has put a stop to the construction of its proposed electric vehicle (EV) battery plant in Michigan, amidst criticism from the Republicans over its plans to use licensed Chinese battery technology, Politico reported.

The company is pausing work and limiting spending on the facility until they can be assured of the plant’s competitive operation, as stated by Ford spokesperson T.R. Reid.

The pause coincides with the second week of a United Auto Workers strike against Ford and other automakers, which is likely to significantly increase labor costs for the companies as they shift towards EV production.

See Also: GM, Ford, And Stellantis Brace For Escalation Of UAW Strikes

Initially announced in February, the $3.5 billion plant was planned to be operational by 2026, employing 2,500 workers and marking Ford as the first automaker to manufacture next-generation lithium, iron, and phosphate batteries in the U.S.

The project, however, faced backlash over its intended reliance on technology from Chinese firm, Contemporary Amperex Technology Co., the world’s largest manufacturer of EV batteries. The plant could be eligible for incentives under the Inflation Reduction Act, which includes tax subsidies for electric vehicles and domestic battery production, raising concerns about federal dollars flowing to China.

Residents of Marshall, Michigan, where the plant was to be located, raised concerns about the project’s potential environmental impacts, the loss of farmland, and ties to China. The pause was welcomed by local GOP Rep. Lisa McClain and other opponents of the project, who voiced their disapproval of Chinese technology influencing American industry.

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