U.S. automaker Ford Motor Company is dramatically scaling back an electric vehicle (EV) battery plant under construction in Michigan as its EV business continues to lose billions of dollars.
In an announcement Tuesday, Ford said it would resume the Marshall, Michigan, project, but reduce its scope by more than 40% and the number of jobs it is projected to create by more than 30%. Ford, which has struggled to make a profit from its ongoing shift to EVs as sales decline and costs soar, added that it remained confident in the future viability of its EV business.
“While we remain bullish on our long-term strategy for electric vehicles, we are re-timing and resizing some investments,” Ford said in a statement Tuesday. “As stated previously, we have been evaluating BlueOval Battery Park Michigan in Marshall.”
“We are pleased to confirm we are moving ahead with the Marshall project, consistent with the Ford+ plan for growth and value creation,” it continued. “However, we are right-sizing as we balance investment, growth, and profitability. The facility will now create more than 1,700 good-paying American jobs to produce a planned capacity of approximately 20 GWh.”
The automaker added that the facility is still expected to be Ford’s first battery plant of its kind to enter operations when it is scheduled to open in 2026.