Ford Slashes EV Battery Plant Expansion

Ford Cuts Back on EV Battery Plant Due to Weaker Demand

Ford has announced that it will be reducing the size of its planned electric vehicle (EV) battery plant in Marshall, Michigan. This decision comes as a result of weaker demand for EVs than originally anticipated.

A spokesperson for Ford stated, "EV sales are not growing at the pace that we, or the industry, had expected." As a result, the company has revised its plans for the plant. Initially, Ford had intended to build a facility capable of producing 400,000 EVs annually. However, the revised plan now calls for a plant with a capacity of 230,000 EVs per year.

In addition to the reduction in production capacity, the employment numbers for the plant have also been adjusted. Originally, the plant was expected to employ 2,500 people. However, with the revised plans, the number of employees will be reduced to 1,700. The plant is scheduled to open in 2026.

This announcement follows Ford's recent decision to postpone $12 billion of its EV investments. Furthermore, in September, the company announced the postponement of a second battery plant in Kentucky, which was planned to be built in partnership with SK of Korea.

Financially, Ford has faced challenges in its EV business. The company reported a loss of $3.1 billion in the first three quarters of this year alone. It is projected that the full-year loss will amount to $4.5 billion.

According to recent data, a total of 873,000 EVs were sold in the US until the end of September this year. While this represents 8% of the total US vehicle market, it falls short of the expected growth in demand for EVs.