Ford’s Michigan EV Plant Gets Tax Credits Despite Chinese Tech Worries
Ford Motor Co.’s new $3 billion battery plant in Michigan will keep its tax benefits after changes to federal rules. Construction is pushing ahead, with the site over halfway done….
Automation automobile factory concept with 3d rendering robot assembly line with glowing ev car battery cells module on platform
Ford Motor Co.'s new $3 billion battery plant in Michigan will keep its tax benefits after changes to federal rules. Construction is pushing ahead, with the site over halfway done. This massive project will add jobs to the local workforce by 2026.
"Ford is committed to making the best, most cost-effective batteries for the next generation of electric vehicles in the United States," said company spokesperson Robyn Jackson.
The site will make batteries with technology licensed from CATL, a Chinese company. Earlier tax rules would have blocked money for plants using Chinese parts or knowledge, but lobbying efforts got those rules changed.
When running at full capacity, the plant will make enough lithium iron-phosphate cells to store 20 gigawatt-hours of power each year. The government offers $35 in tax breaks for each kilowatt-hour of cell power. Companies get an extra $10 if they put the cells into battery packs.
"The future of Marshall looks better today than it has in 40 years," said Scott Wolfersberger, mayor of Marshall. "Ford is truly a great American company, and we should all be proud that they selected Marshall as the place to invest for its long-term future."
Big changes are coming this fall. The $7,500 tax break for new electric cars will end. So will the $4,000 break for used ones. Car makers won't face fines if they miss fuel targets.
Sales of electric cars have slowed, so Ford made the plant smaller than first planned. As a result, Michigan reduced its incentive package for the plant.
Car makers like GM, Ford, Toyota and Volkswagen backed the new federal rules through their group, the Alliance for Automobile Manufacturers. They liked that the changes "preserved auto-related advanced manufacturing across the country and prohibited Chinese companies from eligibility."
The final word isn't in yet. Treasury officials still need to write exact implementation rules about who gets tax breaks. These details will decide if the plant gets to keep its expected benefits.
