Ford Motor Company’s US$3 billion EV battery plant in Marshall, Michigan, is now 60% complete.

The project is expected to qualify for US production tax credits.

The automaker confirmed compliance with updated regulations from a recently revised tax and budget bill.

The facility is projected to employ 1,700 workers upon completion.

It had previously faced uncertainty due to legislative discussions in May that considered excluding EV batteries using Chinese technology.

Ford said the project remains on schedule to meet the requirements aimed at boosting US manufacturing competitiveness.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ EV policy shift: Production incentives survive while consumer credits disappear

The Ford battery plant news highlights a significant transition in U.S. electric vehicle policy, where production incentives are being preserved while consumer tax credits are eliminated.

The upcoming budget bill will end the $7,500 tax credit for new EV purchases after September 30, 2025, while maintaining production tax credits for manufacturers like Ford 1.

This policy shift represents a change in approach: instead of subsidizing EV purchases, the focus is now on supporting domestic manufacturing capacity.

The elimination of consumer credits could significantly impact EV adoption, with analysis projecting a net decrease of 1.7 million EV sales (30%) by 2030 2.

Meanwhile, production tax credits, worth $35 per kWh for battery cells and $10 per kWh for modules, will continue supporting manufacturers, potentially providing Ford’s Michigan plant with substantial operational support 3.

This approach reflects the challenge of balancing reduced federal spending with maintaining U.S. manufacturing competitiveness, particularly in strategically important technologies.

2️⃣ Battery manufacturing emerges as the new battleground in U.S.-China technology competition

Recent Ford developments