{"id":2044941,"date":"2023-09-26T10:42:01","date_gmt":"2023-09-26T14:42:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ford-halts-construction-of-china-linked-3-5-billion-battery-plant-in-michigan\/"},"modified":"2023-09-26T10:44:32","modified_gmt":"2023-09-26T14:44:32","slug":"ford-halts-construction-of-china-linked-3-5-billion-battery-plant-in-michigan","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ford-halts-construction-of-china-linked-3-5-billion-battery-plant-in-michigan\/","title":{"rendered":"Ford stops building $3.5B battery plant in Michigan due to China connection."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fford-halts-construction-of-china-linked-3-5-billion-battery-plant-in-michigan%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2044941&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2>Ford Halts\u2063 Construction\u2064 of $3.5 Billion EV Battery Plant\u200b in \u2062Michigan<\/h2>\n<p>Ford Motor Company announced on Monday that it is pausing the construction of a $3.5 billion\u2062 electric vehicle (EV) battery plant \u200bproject in Michigan. The project has faced criticism due to\u200c its ties to China.<\/p>\n<p>&#8220;We&#8217;re \u2064pausing work, and we&#8217;re going to limit \u200dspending on construction at \u2064Marshall until we&#8217;re confident about our ability \u2062to\u200b competitively run the plant,&#8221; said Ford spokesman T.R. Reid.<\/p>\n<p>There are several factors that prompted this\u200b decision, including the ongoing strike by the United Auto Workers (UAW) union. However, \u200dFord has\u2063 not made\u2064 a \u2064final decision\u200b about the \u2062investment.<\/p>\n<\/blockquote>\n<h2>Related Stories<\/h2>\n<ul>\n<li>\n<h3><a href=\"http:\/\/www.theepochtimes.com\/world\/japan-canada-pledge-more-co-operation-on-battery-supply-chains-ai-technology-5496293?ea_src=author_manual&#038;ea_med=related_stories\">Japan, Canada Pledge More Co-Operation on Battery Supply Chains,\u2062 AI Technology<\/a><\/h3>\n<p>Published on 9\/21\/2023<\/p>\n<\/li>\n<li>\n<h3><a href=\"http:\/\/www.theepochtimes.com\/world\/ev-battery-plant-deals-will-take-20-years-to-break-even-pbo-5490290?ea_src=author_manual&#038;ea_med=related_stories\">EV Battery Plant Deals Will Take 20 Years to Break Even: PBO<\/a><\/h3>\n<p>Published on 9\/12\/2023<\/p>\n<\/li>\n<\/ul>\n<p>Republicans in Congress have been investigating Ford&#8217;s battery plant plan in Marshall due to\u2063 its ties to China-based company Contemporary Amperex Technology Co. Ltd. (CATL), the world&#8217;s \u200clargest \u2064EV battery maker.<\/p>\n<p>Under a \u2062licensing agreement, CATL will provide the EV battery technology, equipment, and workers, while a\u2064 Ford\u200d subsidiary will own \u2063the factory and employ \u200dthe workers.<\/p>\n<p>Earlier, Ford had announced that production at the \u200bMarshall battery plant, named Blue Oval, would\u200d begin in\u2064 2026.<\/p>\n<p>After completion, the plant was\u200d expected to produce enough batteries for \u2062400,000 EVs annually.<\/p>\n<p>The auto\u2062 industry is closely monitoring new rules \u200dregarding\u2063 future EV tax \u200bcredits as they make decisions on battery\u200b production.<\/p>\n<p>The\u200b Inflation \u2062Reduction Act, passed in 2022, will eliminate $7,500 consumer EV tax credits if any\u200d battery components are manufactured or assembled by a\u200c &#8220;foreign \u200centity of concern.&#8221;<\/p>\n<p>Ford is \u200dawaiting guidance to determine if \u200cthe batteries produced by the\u200d Marshall plant meet the\u2064 requirements.<\/p>\n<h2>UAW Strike In \u2062Background<\/h2>\n<p>The construction halt at the\u2062 Marshall facility coincides with\u200d an ongoing labor strike\u2064 by the United \u2063Auto Workers (UAW) union, \u2064which is targeting Ford, General \u2064Motors, and Stellantis simultaneously.<\/p>\n<p>Last Friday, the union escalated its strike against General Motors\u200c and Stellantis but spared Ford from further walkouts.<\/p>\n<p>While progress \u200dhas been made in negotiations\u200c between the UAW and Ford, significant\u2064 gaps still need to be \u200daddressed before a new labor deal is reached.<\/p>\n<p>The \u200bUAW\u2063 expanded its strike to include 38 parts and\u2064 distribution \u200dfacilities\u200c across 20 states for\u200c General Motors \u2062and Stellantis.<\/p>\n<h2>Marshall Plant \u2063Controversy<\/h2>\n<p>In February \u20642023, Ford announced plans to build \u200da new\u200c $3.5 billion plant in Marshall, Michigan.\u200c The plant \u2063would produce lithium-iron-phosphate \u200dbatteries,\u200d known as LFP, which are\u200d cheaper \u200bbut less energy-dense than the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ford-halts-construction-of-china-linked-3-5-billion-battery-plant-in-michigan\/\" title=\"Ford stops building .5B battery plant in Michigan due to China connection.\">current market-dominating nickel-cobalt-manganese batteries<\/a>.<\/p>\n<p>Under the \u2063licensing agreement,\u200c a Ford subsidiary will\u200c own the plant, while China-based CATL will provide equipment, technology, and workers.<\/p>\n<p>However, the plant has faced criticism due to concerns about CATL&#8217;s \u200cties to the Chinese\u2063 Communist Party (CCP) and potential national security\u200b risks.<\/p>\n<p>Locals have also\u200d expressed concerns about transparency, loss of farmland,\u200b and the impact on\u2063 the small town.<\/p>\n<p>One \u2064concern is \u200bthe proximity of the intended battery park site to the\u2062 Battle Creek Air National \u200bGuard \u2064Base, which hosts a ground control station\u200c supporting U.S. missions.<\/p>\n<p>Marshall Area Economic Development Alliance\u2062 (MAEDA) has stated that the EV plant does\u2064 not pose any <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/republicans-demand-hold-on-biden-commerce-pick-over-huawei-concerns\/\" title=\"Republicans Demand Hold on Biden Commerce Pick Over Huawei Concerns\">national security issues<\/a>.<\/p>\n<p>Congressional lawmakers \u2064have sought to review the licensing agreement, \u200dfearing that it will contribute to China&#8217;s \u200ddominance in EV battery technology and involve\u2063 the use of \u2064U.S. taxpayer dollars.<\/p>\n<p>Ford has defended the deal, emphasizing its investment in the United States \u2062and job creation.<\/p>\n<p><em>Terry Wu contributed to this report.<\/em><\/p>\n<p> <\/p>\n<h2> What concerns have been raised \u2063about Ford&#8217;s \u200cpartnership with CATL and the feasibility of the\u200c battery plant project<\/h2>\n<p><span>  \u2063Trike by the United Auto Workers (UAW) union. The strike, which began on September 13, has \u200cdisrupted operations at\u200c several Ford plants across the country, including\u200d the Dearborn Truck Plant and \u2062the Kansas City Assembly\u200c Plant. The\u2064 UAW is \u200dseeking higher wages, better benefits, and improved working conditions for its members.<\/p>\n<p>The \u200cstrike has \u200dnot only\u2062 affected Ford&#8217;s production, but \u2064it has also had an impact on \u2063the construction of the battery plant in Marshall. The company has limited its spending on construction until the \u2062labor\u200c dispute is resolved. The UAW \u2063strike \u2063has created uncertainties for Ford, and it wants\u200b to ensure that\u2062 it can competitively \u200drun the plant before proceeding with\u200c the investment.<\/p>\n<p>While the UAW \u2063strike is one factor contributing to the construction halt, there are other concerns surrounding the battery plant\u2064 project. \u2062Republicans in Congress have raised questions about \u2064the \u2064ties between Ford and CATL, the Chinese battery maker. There have been concerns\u2063 about intellectual property\u2062 theft and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-no-new-proactive-step-on-tiktok-deal-under-biden\/\" title=\"White House: No New \u2018Proactive Step\u2019 on TikTok Deal Under Biden\">potential national security risks<\/a> associated with partnering with Chinese companies.<\/p>\n<p>Under the licensing agreement with CATL, Ford&#8217;s subsidiary\u2062 would own the factory and employ the workers, while CATL would \u2064provide the battery\u2063 technology, equipment, and workers. \u200bThe\u200d partnership with CATL is\u200c crucial\u2064 for Ford&#8217;s battery production ambitions, as the Chinese company\u2062 is the world&#8217;s largest EV battery maker.<\/p>\n<p>However, \u2063the scrutiny\u2063 from Congress and the ongoing UAW strike have raised doubts about \u2063the feasibility and \u2064profitability of\u200c the \u200bproject. Furthermore, a recent report \u200dby the Parliamentary Budget Office (PBO) suggested that EV battery \u2063plant deals would take 20 years\u200d to break even financially. \u2062This adds to the concerns surrounding the project&#8217;s\u2062 viability.<\/p>\n<p>The construction halt at the Marshall facility is a setback for Ford&#8217;s plans to increase its presence in the EV market. The \u2062company had \u2062previously announced that production at the battery \u2063plant would begin in 2026, and it\u200d aimed to produce \u2064enough batteries for \u2063400,000 EVs annually. \u2063However, with the current \u2064challenges and uncertainties, Ford is reconsidering its investment and awaiting guidance on the EV\u200c tax credit requirements.<\/p>\n<p>The decision to pause the construction reflects the importance\u200b of carefully evaluating all \u2062factors\u2062 before \u200bproceeding with a major investment. Ford&#8217;s hesitation demonstrates \u2062the complexities\u200d and risks involved\u2064 in building\u200c an \u2064EV \u2063battery plant, especially\u200b when it involves partnerships with foreign companies and is\u200d subject to evolving regulatory requirements.<\/p>\n<p>Ultimately, Ford&#8217;s ability to competitively run the plant and meet the demands of the EV market\u200d will\u2063 determine the future of the project. The company must carefully assess the economic viability, regulatory\u2063 compliance, and national security implications \u200cbefore making \u200ca final decision on \u2064the construction of the $3.5 billion battery\u200d plant in Michigan.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ford Motor Company announced on Monday that it will temporarily halt the $3.5 billion construction of an electric vehicle battery plant in Michigan. The decision comes amidst concerns regarding its association with China. Ford spokesperson T.R. stated that work will be paused and spending on construction at Marshall will be limited until the company is confident in its ability to effectively operate the plant.<\/p>\n","protected":false},"author":118,"featured_media":2044942,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2044941","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2044941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/118"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2044941"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2044941\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2044942"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2044941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2044941"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2044941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}