Ford Warns of Potential Michigan Battery Plant Closure Amid Tax Credit Uncertainty
Bill Ford,Executive Chair of Ford Motor Co., announced plans for the battery plant in Marshall during a press event in 2023. (Bill Pugliano/Getty Images)
Citing insights from Bill Ford at the Mackinac Policy Conference on May 29, there’s growing concern that proposed cuts to federal clean energy incentives could jeopardize their new electric vehicle battery facility in Michigan.
The planned site in Marshall is crucial for employing thousands and producing batteries essential for electric vehicles. However, if Congress decides to eliminate tax credits that support battery manufacturing as part of a broader tax reform initiative, it could put these jobs at risk.
“Changing policies after investments have been made isn’t fair,” Ford remarked. “The production tax credit is currently under threat.”
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After his speech, he emphasized that maintaining the current production tax credit is vital since their business model relies heavily on it.
The Biden administration’s climate legislation introduced various tax incentives aimed at bolstering an electric vehicle supply chain and encouraging consumer adoption of evs. However, some Republican lawmakers are pushing back against these initiatives. Their proposed legislation seeks not only to phase out a $7,500 consumer incentive for EV purchases but also aims to terminate manufacturing credits for battery producers post-2031 while imposing stringent restrictions on Chinese materials—perhaps crippling the industry’s growth.
“While there might potentially be differing opinions about these policies’ merits,” said Ford. “It’s simply unfair to alter rules after importent investments have been made.”
MORE: Construction Halted on Michigan Battery Plant by Ford
This legislative uncertainty adds another layer of complexity to a project initially unveiled by Ford back in 2023 with aspiring goals—originally intended to produce batteries sufficient for powering up to 400,000 electric vehicles before scaling down expectations due to fluctuating market demand.
For more updates and insights into this evolving situation…
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