Ford Downsizes LFP Battery Plans in Michigan

Ford has announced changes to its plans for the ‘BlueOval Battery Park Michigan’ in Marshall. After revealing plans in February 2023 to produce lithium iron phosphate (LFP) batteries at the new facility starting 2026 with a workforce of 2,500 and an annual capacity of 35 gigawatt-hours, Ford has now declared to reduce the dimensions to 1,700 jobs and 20 gigawatt-hours.

Intended production start remains intact

Despite the reduction, the target of starting LFP battery cell production in 2026 remains. Two months ago, construction of the plant had been interrupted due to intensive negotiations with the United Auto Workers union. The negotiations resulted in a new contract that entails higher labor costs for Ford. In its press release on the downsizing, Ford talks about “right-sizing to balance investment, growth, and profitability”.

Sources:
https://media.ford.com/content/fordmedia/fna/us/en/news/2023/11/21/blue-oval-battery-park-michigan-update.html
https://media.ford.com/content/fordmedia/fna/us/en/news/2023/02/13/ford-taps-michigan-for-new-lfp-battery-plant–new-battery-chemis.html
https://media.ford.com/content/fordmedia/fna/us/en/news/2023/11/20/statement-on-uaw-ford-contract-ratification.html

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