by Ford is concerned about the cancellation of tax incentives for battery manufacturers
The company Ford warns that the cancellation of tax incentives for local battery manufacturers could jeopardize its plans for electric vehicle production. The BlueOval Battery Park Michigan plant, which already employs 1,700 people, plans to hire another 800 workers by 2027. This facility is key to Ford’s strategy to expand electric vehicle production, but its future depends on the preservation of tax incentives.
At a conference in Michigan, Bill Ford expressed concern about possible changes in tax policy:
“It’s unfair to change the rules after all the investments have already been made”
He also noted that due to uncertainty regarding tax incentives, the future of the plant could be at risk.
Consequences of the new legislative initiative
A recently passed bill provides for the cancellation of most tax incentives for clean energy introduced by the Biden administration. These incentives are aimed at developing the domestic supply chain for electric vehicles and encouraging consumers to purchase them.
If the bill is approved, it will not only lead to the cancellation of a $7,500 tax credit for electric vehicle buyers but will also limit incentives for battery manufacturers after 2031. Additionally, the new rules will restrict the use of Chinese components in production.
Ford’s plant in Michigan operates under a licensing agreement with the Chinese battery manufacturer CATL. Although Ford fully controls the production process, the company uses CATL’s technological solutions for equipment installation and obtaining know-how in battery technologies.
The cancellation of tax incentives could affect not only Ford but also other automakers that have invested billions in the development of electric vehicle production in the U.S. This is especially true for states such as North Carolina, Georgia, and Tennessee, where significant investments have been made in the relevant infrastructure.
