Ford Motor Co. has been able to continue developing its electric vehicle battery plant in Michigan thanks to a crucial amendment in the U.S. tax bill, enabling the plant to qualify for federal manufacturing tax credits.
Ford's $3 billion electric vehicle battery plant in Marshall, Michigan is on track for completion and is expected to benefit from tax incentives aimed at boosting domestic electric vehicle battery production.
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Ford restarts its electric vehicle battery plant project in Michigan after the revision of the U.S. tax law.
The factory uses LFP battery technology from Chinese partner CATL, creating 1,700 jobs.
The new tax law maintains incentives and eliminates penalties for failing to meet fuel economy targets, but poses long-term challenges for domestic technology.
Is Ford's electric vehicle battery plant in Michigan back in operation?
According to Ford's statement, the $3 billion electric vehicle battery plant in Marshall has reached 60% completion and is expected to start production in 2026, ensuring eligibility for federal manufacturing tax credits.
This plant will create 1,700 jobs for the people of Michigan and use lithium iron phosphate (LFP) battery technology licensed from CATL – the largest electric vehicle battery manufacturer in the world. Initially, the project faced risks due to policies excluding products related to China from tax incentives.
Retaining the tax credit for the Marshall plant is a "victory for customers and the competitive position of the U.S.," a Ford representative emphasized on July 8, 2025.
Quoted by Ford spokesperson, Reuters, July 8, 2025
How have changes in U.S. tax law helped Ford?
The revised U.S. tax and budget law has adjusted the exclusion clause for Chinese companies in the battery supply chain, allowing Ford to use CATL's technology to benefit from the manufacturing tax credit.
In addition, the new law also eliminates penalties for manufacturers that do not meet Corporate Average Fuel Economy (CAFE) targets, reducing the burden on automakers during this period.
This reflects a necessary compromise to maintain the momentum of the electric vehicle industry in the U.S., while also allowing companies greater flexibility in leveraging foreign technology resources.
What are the long-term implications of these adjustments?
A policy expert commented that this is a temporary solution that helps maintain the pace of electric vehicle production, but the U.S. needs to increase investment in domestic battery technology development to achieve supply chain independence.
"The U.S. must invest heavily in domestic battery technology and supply chains if it wants true autonomy in the electric vehicle industry," a policy analyst stated, 7/2025.
Policy expert, U.S., 2025
The production situation and prospects of Ford's battery plant in Michigan
Ford's electric vehicle battery plant, starting from early 2023, has held strong amidst a backdrop of stagnant global electric vehicle demand and high production costs, with plans to adjust output accordingly to optimize resources.
Despite many challenges, the plant still aims to make a significant contribution to the electric vehicle supply chain in the U.S., affirming its commitment to sustainable development in the green cryptocurrency sector along with a domestic manufacturing network.
Comparison of tax incentives before and after the law change
Criteria Before Amendment After Amendment Eligibility for Tax Credit Restricted due to Chinese technology Ensure eligibility with CATL technology CAFE Violation Penalty Apply strict penalties Eliminate penalties for CAFE targets Impact on Production Disruption and concerns about incentives Stability, boosting domestic battery production
Frequently Asked Questions
What battery technology does Ford use for the plant in Michigan? Ford uses lithium iron phosphate (LFP) battery technology licensed from CATL, the world's leading battery manufacturer. When is Ford's battery plant expected to start operations? The plant is expected to begin producing batteries in 2026, having completed 60% of the construction. How does Ford benefit from tax incentives after the tax law amendment? The amendment in tax law removed the exclusion clause for Chinese technology, allowing Ford to qualify for federal manufacturing tax credits. How do the new incentives affect the U.S. battery manufacturing industry? The incentives help boost domestic battery production and reduce pressure from penalties for failing to meet fuel economy targets, creating a favorable environment for manufacturers. What does the U.S. need to do to develop a sustainable electric vehicle battery industry? According to experts, the U.S. needs to increase investment in battery technology research and build a domestic supply chain to achieve long-term autonomy.
Source: https://tintucbitcoin.com/ford-nha-may-michigan-hoat-dong-tro-lai/
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