Ford to restart joint construction of battery factory with CATL, scale of production reduced

Ford and CATL resume joint construction of battery factory, production scale reduced

【PhoneAuto News】On November 23rd, PhoneAuto learned that there is new progress in the cooperation project between CATL (Contemporary Amperex Technology Co. Limited) and Ford. According to foreign media reports, Ford will restart the construction plan for its electric vehicle battery factory in Michigan, USA, which was previously put on hold.

Ford stated that, considering the balance between investment and profitability, the scale will be reduced. The production scale will be decreased by over 40% compared to the original plan, with an annual capacity adjustment from 35 gigawatt-hours to 20 gigawatt-hours. The workforce will also be reduced from 2500 to 1700 people, with the goal of starting production in 2026. Ford explained that the adoption rate of electric vehicles in the United States has been slower than expected. Due to the impasse in labor negotiations with the United Auto Workers union (UAW), Ford announced in October that it would consider delaying or withdrawing a total of $12 billion in investments related to electric vehicles.

In February of this year, Ford announced its collaboration with CATL to establish a next-generation power battery factory in Michigan, USA, with a total investment of $3.5 billion. Ford owns this new factory, while CATL provides construction and operating services, as well as licensing for battery patent technology. Since then, there have been continuous controversies between CATL and Ford in the joint construction of the battery factory. Due to various complex factors, the construction of Ford and CATL’s electric vehicle factory in Michigan was halted in September this year. Ford revealed, “We will pause the work and limit the construction expenses of the Marshall project until we have confidence in the competitiveness of operating our own factory.”

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Regarding the news of Ford suspending the construction of the joint factory with CATL in the United States, the media sought confirmation from CATL, and the response was: “Our cooperation project with Ford is progressing normally.”

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