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Ford Motor Company (NYSE:F) announced on Monday that it halted construction of its $3.5B electric vehicle battery plant in Marshall, Michigan.
“We’re pausing work and limiting spending on construction on the Marshall project until we’re confident about our ability to competitively operate the plant,” stated Ford spokesperson T.R. Reid. “We haven’t made any final decision about the planned investment there,” he added.
The plant – called BlueOval Battery Park Michigan – was set to initially employ 2,500 people when production of LFP batteries began in 2026. Ford (F) was expected to have the option to further grow its battery capacity at its Marshall, Michigan, plant, which will be part of a wholly owned Ford subsidiary.
The Detroit automaker warned over the weekend that there were still significant gaps in its labor talks with the United Auto Workers. Analysts think that one of the consequences of a much higher pay scale in a new UAW contract would be a slower rollout of some of the electric vehicle initiatives.
Shares of Ford (F) moved 1.1% higher on Monday and are 6.8% higher over the last six weeks. Some industry watchers think that a pullback by Ford (F) with its near-term electric vehicle initiatives and less aggressive EV targets could boost the auto stock.
