Ford’s planned electric vehicle battery plant in Marshall, Michigan, is at risk if Congress eliminates federal tax credits tied to clean energy manufacturing, Executive Chair Bill Ford warned on May 29.
Speaking at the Mackinac Policy Conference on Mackinac Island, Ford said the company’s $3.5 billion investment and its plan to employ 1,700 workers hinge on production tax credits passed under former President Joe Biden’s climate law. Those incentives are now under threat as House Republicans move to roll them back through new legislation.
However, if the credits do not remain, they will have “imperil” impacts on the automakers’ Marshall battery facility. “We made a certain investment based upon a policy that was in place. It’s not fair to change policies after all the expenditure has been made,” executive chairman Ford said.
The bill passed by the U.S. House earlier this month would eliminate tax credits for batteries made with Chinese technology after 2031. Ford’s factory, now under construction, plans to use technology from Chinese battery manufacturer CATL. The legislation still faces a vote in the Senate, where opposition remains strong among Democrats and some fiscally conservative Republicans.
Ford reiterated after the event that “nothing needs to change” about the tax credit, emphasizing that the Marshall project’s business case was built around it.
Initially announced in 2023, the Marshall plant was expected to produce enough battery capacity to support 400,000 EVs annually. Ford later revised that number to 230,000 vehicles due to softening demand. The company also accepted a reduced incentive package from the state of Michigan after lowering its output goals.
“Politicians can agree or disagree about whether those things are desirable,” Ford said. “But don’t change the rules once you’ve already made the investment — that, to me, is just a question of fairness. And that’s unfair.”
