gopixa
Ford’s (NYSE:F) Michigan EV battery plant will now qualify for production tax credits thanks to revised language within President Trump’s “Big, Beautiful Bill.”
Originally, Ford’s (NYSE:F) EV battery plant in Marshall, Michigan was ineligible for tax incentives due to its planned use of battery technology licensed from China’s Contemporary Amperex Technology Co. (CATL).
Under the new revisions in the bill preserve the 45X Advance Manufacturing Production Credit, providing a credit of $35 per kWh for battery cells and $10 per kWh for modules. Under the provisions of the bill, EV batteries must contain 60% U.S. content in 2026, increasing to 85% in 2030.
Ford’s (NYSE:F) BlueOval Battery Park, currently 60% complete, is expected to begin production next year. The facility will make lithium iron phosphate batteries.
However, the project has been fraught with controversy. Backlash against the company’s use of Chinese technology after the Pentagon added CATL to its list of companies that work with China’s military, led local officials to cut tax credits for the project as well as public grants. Ford (NYSE:F) subsequently scaled back its investment in the facility by $1B to $2.5B and reduced its footprint by 30% to 1.2 million square feet.