Great Lakes Wire

Ford Motor Company has announced that its electric vehicle (EV) battery plant in Michigan is on track to qualify for federal production tax credits. The announcement was made on the social media platform X.

According to Reuters, Ford's EV battery plant in Marshall, Michigan, is expected to qualify for federal production tax credits under recent U.S. policy updates. The company is licensing technology from China's Contemporary Amperex Technology Co., Limited (CATL) for the plant, which has sparked discussions about eligibility for U.S. tax incentives when foreign technology is involved. Legislative changes have preserved Ford’s ability to access these credits, although the arrangement continues to prompt public and political debate over the use of taxpayer funds in projects involving foreign entities.

The Wall Street Journal reports that Ford’s Marshall battery plant is projected to employ 1,700 workers and utilize technology from CATL, facilitated by relaxed federal restrictions on "foreign entities of concern." Legislative modifications now allow Ford’s partnership with CATL to proceed and access federal tax credits. Some Michigan residents and local officials have expressed concerns that the structure of these incentives means taxpayers may indirectly subsidize projects involving foreign firms, potentially diverting public funds from other state needs.

InsideEVs notes that under Section 45X of the Inflation Reduction Act, battery producers can receive up to $35 per kilowatt-hour for battery cells and $10 per kilowatt-hour for battery packs. For Ford’s 20 gigawatt-hour (GWh) plant, this could amount to $900 million in federal tax credits. Analysts indicate that while these incentives aim to boost domestic manufacturing, some local stakeholders question whether such large-scale federal spending—often funded by taxpayers—provides sufficient direct benefits to Michigan communities.

Jim Farley serves as the President and Chief Executive Officer of Ford Motor Company. He assumed the role in October 2020 after previously holding positions as Chief Operating Officer and Executive Vice President of Global Markets. Farley oversees Ford’s global operations, including major investments in electric vehicle and battery production.