Ford cuts back on major EV investment, jobs at Michigan battery plant
In its latest setback, Ford is cutting back on another significant EV investment. The company is scaling back plans at its $3.5B EV battery plant in Michigan as it adjusts to market demand.
Ford said it was “re-timing and resizing some investments” in a statement Tuesday. Although it remains bullish on its long-term strategy, Ford is reducing its investment and cutting jobs at its Michigan EV battery plant.
The company is cutting production capacity at the facility by over 40%. Ford now expects the facility to produce around 20 GWh, a big difference from the 35 GWh initially expected.
Ford is also reducing its investment in the facility by nearly $1.5B while cutting the expected number of jobs to 1,700.
After announcing the facility in Marshall, MI, this February, initial plans called for:
- 2,500 new jobs
- 35 GWh annual output of LFP batteries, starting in 2026
- 400,000 EVs in 2026, or 20% of Ford’s expected 2M output.
Those plans are now being scaled back drastically. The plant will now produce enough LFP batteries for around 230,000 EVs annually.
Ford’s chief communications officer, Mark Truby, told reporters (via Bloomberg) that EV adoption “is not growing at the pace” they expected. Truby said Ford wants to be “really disciplined” about spending and matching future demand.
Ford to scale back Michigan EV plant in latest setback
Ford’s EV plant in Michigan was quickly targeted over its partnership with Chinese battery giant CATL. Plans called for Ford to own the plant while licensing CATL’s tech to build the LFP batteries.
The move is part of Ford’s plans to scale back EV investments. Ford said it was delaying its 600,000 run rate goal until next year over the summer.
More recently, it cut one of three shifts at its Rouge EV complex, where the F-150 Lightning is built. Ford’s CFO John Lawler explained last month the company has also “taken out some Mach-E production.
Lawler added that Ford is “slowing down several investments, including making a decision with SK On to delay the second BlueOval SK JV battery plant in Kentucky.”
Ford is pushing back around $12 billion in spending on EVs. Sales of Ford’s electric pickup fell 46% in Q3. The company lost around $36,000 on every EV sold during the quarter.
Truby said the decision was based on “demand and the expected growth for EVs, our business plans, our product cycle plans,” and the ability to create a sustainable plant.
He added, “Labor costs was one of the factors we were looking at.” Ford reached an agreement with the UAW, which increased wages by 25%.
Despite this, Ford said it plans to move ahead with the project. It expects to begin producing LFP battery cells in 2026.
Electrek’s Take
Plans to scale back its Michigan EV battery plant is the latest setback for Ford. The company continues delaying EV investments alongside rival General Motors.
GM revealed it was pushing back production of the Equinox, Silverado, and GMC Sierra Denali EVs last month. Following a four-year run, it’s also not planning to promote its EVs during the 2024 Super Bowl.
Meanwhile, rivals, including Hyundai and Volvo, are doubling down as they work to expand their brands.
Hyundai surpassed GM and Ford in EV sales in Q3. Including Kia, Hyundai claimed 7.5% of the market, while GM’s Chevy (5.9%) and Ford (5.5%) fell in the rankings.
Jose Munoz, Hyundai’s global president, told Reuters last week, “Based on what I see, I need more. If I had more capacity today, I could sell more cars.”
Meanwhile, Volvo expects its smallest and cheapest electric SUV, the EX30 (check out our review), to keep momentum rolling next year.
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On today’s sunny side up episode of Quick Charge, we take a look at the latest from the world of solar power, and discuss Congressional Republicans’ plans to limit your energy independence by eliminating a critical tax credit for homeowners nearly ten years early. (!)
We’ve also got a quick review of a massive solar farm powering 200,000 homes in Indiana and the biggest solar project East of the Mississippi – both part of a record 98% of all new power generation and grid capacity introduced in 2025 coming from wind and solar. Those are jobs, those are lower utility rates, those are energy independence … so why are Congressional Republicans working to make that more expensive?
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If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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A Waymo autonomous vehicle drives along Masonic Avenue on April 11, 2022 in San Francisco, California.
Justin Sullivan | Getty Images News | Getty Images
Alphabet’s Waymo unit has received approval to expand its autonomous ride-hailing service to more parts of the San Francisco Bay Area, including San Jose.
In March, the company submitted a request to the California Public Utilities Commission to gain approval for its latest passenger safety plan, a key step in gaining permission to operate driverless vehicles across a broader area. On Monday, the proposed expansion was approved, allowing for Waymo’s driverless coverage to extend from San Francisco down through the Peninsula.
“We’re very excited to share that the CPUC has approved our application to operate our fully autonomous commercial ride-hailing service in the South Bay and nearly all of San Jose!” the company wrote in a post on X on Monday. “While this won’t change our operations in the near-term, we’re looking forward to bringing the benefits of Waymo One to more of the Bay Area in the future.”
The $5 billion Empire Wind is back in business. The Trump administration’s Bureau of Ocean Energy Management (BOEM) has lifted its stop-work order for Empire Wind, a major offshore wind project off the coast of New York led by Empire Offshore Wind LLC, a subsidiary of Equinor. Construction is now allowed to resume.
Equinor CEO Anders Opedal welcomed the news, saying the restart reinforces Equinor’s commitment to delivering clean energy while supporting local economies and saving thousands of jobs. He also credited a wide coalition of officials for helping get the project back on track, including Trump, New York Governor Kathy Hochul, and congressional leaders like Senator Chuck Schumer and Representative Dan Goldman. Opedal also thanked the Norwegian prime minister and the minister of finance for raising the issue with the US administration.
Governor Hochul said in a statement that “countless conversations with Equinor and White House officials” had taken place.
Neither the BOEM nor the Department of the Interior has issued a comment.
The Trump administration halted construction of the 54-turbine Empire Wind on April 16, but discussions between Equinor, regulators, and leaders at the federal, state, and city levels led to a reversal. That means Empire Wind can now push ahead with its goal of powering 500,000 New York homes with offshore wind energy.
“This project delivers on the energy ambitions shared by the US and New York by providing a vital new source of power to the region,” said Molly Morris, president of Equinor Wind US. She added that Empire Wind is boosting supply chain investments across the country, with activity in New York, Louisiana, Pennsylvania, Texas, and South Carolina.
Equinor plans to reassess the project’s financials in the second quarter. The goal is still to install turbines offshore in 2025 and hit full commercial operation by 2027. The company says it will work with suppliers and regulators to minimize any delays from the month-long pause.
Empire Wind was first awarded its offshore lease in 2017 after a competitive federal process. It received its final construction green light in early 2024 following an extensive environmental review. Construction kicked off shortly after, and the project is now over 30% complete.
The US is a major market for Equinor. The Norwegian energy giant says it has invested around $60 billion in US energy projects since the early 2000s, more recently in low-carbon solutions, critical minerals, and renewables. Empire Wind is one of its flagship projects in the US.
Read more: Trump admin halts $5 billion NY offshore wind project mid-build
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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