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.
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.
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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National Grid Renewables has broken ground on its 100 MW Apple River Solar Project in Polk County, Wisconsin.
The Wisconsin solar farm, which will use US-made First Solar Series 6 Plus bifacial modules, will be constructed by The Boldt Company, creating 150 construction and service jobs. Apple River Solar will generate over $36 million in direct economic benefits over its first 20 years.
Once it comes online in late 2025, Apple River Solar will supply clean energy to Xcel Energy, which serves customers throughout the Upper Midwest. According to National Grid Renewables, the solar farm will generate enough energy to power around 26,000 homes annually. It will also offset about 129,900 metric tons of carbon dioxide emissions each year – equivalent to taking 30,900 cars off the road.
“We are excited to see this project begin as it underscores our dedication to delivering clean, reliable and affordable energy to our customers,” said Karl Hoesly, President, Xcel Energy-Wisconsin and Michigan. “This project is an important step in those goals while bringing significant economic benefits to Polk County and the local townships.”
Electrekreported in February that Xcel Energy, Minnesota’s largest utility, expects to cut more than 80% – and possibly up to 88% – of its emissions by 2030, putting it on track to hit Minnesota’s goal of net zero by 2040. It also says it’s on track to achieve its clean energy goals for all the Upper Midwest states it serves – Minnesota, Wisconsin, North Dakota, South Dakota, and Michigan.
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Tesla has announced that it will finally deliver 500 kW charging as it is about to install its long-awaited V4 Supercharger cabinets.
The rollout of Supercharger V4 has been a strange one, to say the least.
Tesla has been deploying the new charging stations for two years and calling them “Supercharger V4”, but it has only been deploying the charging stalls.
Supercharger stations are made of two main parts: the stalls, which are where the charging cable is located, and the cabinets, which are generally located further back and include all the power electronics.
For all these new “Supercharger V4”, Tesla was actually using Supercharger V3 cabinets. This has been limiting the power output of the charging stations to 250 kW – although
Today, Tesla officially announced its “V4 Cabinet”, which the automaker claims will enable of “delivering up to 500kW for cars and 1.2MW for Semi.”
Here are the main features of the V4 Cabinet as per Tesla:
Faster charging: Supports 400V-1000V vehicle architectures, including 30% faster charging for Cybertruck. S3XY vehicles enjoy 250kW charge rates they already experience on V3 Cabinet — charging up to 200 miles in 15 minutes.
Faster deployments: V4 Cabinet powers 8 posts, 2X the stalls per cabinet. Lower footprint and complexity = more sites coming online faster.
Next-generation hardware: Cutting-edge power electronics designed to be the most reliable on the planet, with 3X power density enabling higher throughput with lower costs.
Tesla reports that its first sites with the new V4 Cabinets are going into permitting now. The company expects its first sites to open next year.
We recently reported about Tesla’s new Oasis Supercharger project, which includes larger solar arrays and battery packs to operate the charging station mostly off-grid.
Early in the deployment of the Supercharger network, Tesla promised to add solar arrays and batteries to all Supercharger stations, and Musk even said that most stations would be able to operate off-grid.
While Tesla did add solar and batteries to a few stations, the vast majority of them don’t have their own power system or have only minimal solar canopies.
Back in 2016, I asked Musk about this, and he said that it would now happen as Tesla had the “pieces now in place” with Supercharger V3, Powerpack V2, and SolarCity:
It took about 8 years, but it sounds like the pieces are now getting actually in place with Supercharger V4, Megapacks, and this new Oasis project.
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Hyundai has a new secret weapon it’s about ready to unleash. To revamp the brand in China and counter BYD’s surge, Hyundai is launching a new AI-powered EV next year. The new model will be Hyundai’s first dedicated electric car for the world’s largest EV market.
With the help of Haomo, a Chinese autonomous startup, Hyundai will launch its first EV equipped with generative AI. It will also be its first model designed specifically for China.
A Hyundai Motor official said (via The Korea Herald) the company is “working to load the software” onto the new EV model, “which will be released in the Chinese market next year.” The spokesperson added, “The level of autonomous driving is somewhere between 2 and 2.5.”
In comparison, Tesla’s Autopilot is considered a level 2 advanced driver assistance system (ADAS) on the SAE scale (0 to 5), meaning it offers limited hands-free features.
With Autopilot, you still have to keep your eyes on the road and hands on the steering wheel, or the system will notify you and eventually disengage.
Haomo’s system, DriveGPT, unveiled last spring, takes inspiration from the OpenAI’s popular ChatGPT.
The system can continuously update in real-time to optimize decision-making by absorbing traffic data patterns. According to Haomo, DriveGPT is used in around 20 models as it looks to play a bigger role in China.
Hyundai hopes new AI-powered EV boosts sales in China
Electric vehicle sales continue surging in China. According to Rho Motion, China set another EV sales record last month with 1.2 million units sold, up 50% from October 2023.
Over 8.4 million EVs were sold in China in the first ten months of 2024, a notable 38% increase from last year.
BYD continues to dominate its home market. According to Autovista24, BYD accounted for 32.9% of all PHEV and EV (NEV) sales in China through September, with over half of the top 20 best-selling EV models.
Tesla was second with a 6.5% share of the market, but keep in mind these numbers only include plug-in models (PHEV).
Like most foreign automakers, Hyundai is struggling to keep up with the influx of low-cost electric models in China. Beijing Hyundai’s sales have been slipping since 2017. Through September, Korean automaker’s share of the Chinese market fell to just 1.2%.
According to local reports, Hyundai is partnering with other local tech companies like Thundersoft, a smart cockpit provider, and others in China to power up its next-gen EVs
With its first AI-powered EV launching next year, Hyundai hopes to turn things around in the region quickly. The new model will be one of five to launch in China through 2026.
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