MARSHALL, MI (WTVB)- A new bill passed by the U.S. House of Representatives in May 2025 could jeopardize Ford Motor Company’s multi-billion-dollar investment in the BlueOval Battery Park in Marshall, Michigan. The proposed legislation, dubbed the “One Big Beautiful Bill in Congress,” aims to eliminate tax credits for batteries produced using Chinese technology, directly impacting Ford’s plans to license technology from Chinese battery giant CATL for the Marshall facility. Ford Executive Chair Bill Ford emphasized the critical role of these tax credits, stating, “The production tax credit that we made the investment around, it seems to be up for grabs,” warning that their loss could “imperil” the project.
The BlueOval Battery Park, currently under construction and 60% complete, is a cornerstone of Ford’s electric vehicle (EV) strategy, with production of lithium iron phosphate batteries slated to begin in 2026. The plant is expected to create 1,700 jobs and has already prompted Ford to invest over $450,000 in local community initiatives in Calhoun County. However, the project has faced challenges, including a turbulent EV market that led Ford to scale back its initial $3.5 billion investment to $2.5–$3 billion and reduce job projections from 2,500 to 1,700. The state of Michigan also cut its incentive package from $210 million to $141 million in response to Ford’s downsizing, reflecting the project’s precarious footing amid shifting economic and policy landscapes
The potential loss of federal tax credits adds further uncertainty to the Marshall plant’s future, raising concerns about its economic viability and Ford’s broader EV ambitions. Bill Ford has called the proposed cuts unfair, arguing that changing incentives after significant investments have been made undermines business confidence. With the facility poised to bolster domestic battery production and reduce reliance on imports, its success hinges on stable policy support. As the bill awaits further legislative action, stakeholders in Michigan and beyond are closely watching its potential to reshape the region’s economic and environmental future.
Comments