Ford halts work at $3.5 billion US battery plant as factory workers strike

The plant west of Detroit employs 2,500 workers to produce low-cost batteries for electric vehicles. Photo: Dieu-Nalio Chery/Reuters

Ford will halt construction of a $3.5bn (£2.9bn) electric vehicle battery plant in the US amid a high-profile dispute with unions over wages and job security.

The auto giant said it has stopped work at its electric vehicle battery plant in the United States. plant in Michigan and limited spending on it until it was confident it could operate competitively.

The plant was expected to begin producing batteries in 2026, which would supply cells for 400,000 vehicles in year.

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Unions called the move «a disgraceful, thinly veiled threat from Ford to cut jobs» at the plant, which has not yet opened.

Earlier this month, the United Auto Workers (UAW) union went on strike against Ford and two other automakers from Detroit's «big three» — General Motors and the owner of Chrysler Stellantis.

Trade unions are on strike. wages, job security and benefits. In addition to cost of living considerations, workers are concerned that the shift to electric vehicles will lead to job losses. Electric vehicles (EVs) have fewer moving parts and therefore require fewer people to assemble them.

Strike Expansion

The UAW initially targeted one vehicle assembly plant per manufacturer, and last week expanded it to warehouses parts.< /p>

Ford was spared the expansion because the union said progress had been made in negotiations. The automaker is in the process of negotiating a national contract with the UAW, which wants to represent workers at battery plants.

Leading electric vehicle makers in China and Tesla are non-unionized, meaning they typically cut costs more than unionized factories.

In February, Ford announced plans to build a battery plant in Marshall, Michigan, that will employ about 2,500 workers to produce low-cost batteries for a variety of new and existing vehicles. Marshall is about 100 miles (160 kilometers) west of Detroit and close to two major interstates.

Viability considerations

Confirming the work stoppage, Ford spokesman T.R. Reid said: “There are a number of considerations. We have not yet made a final decision on the planned investment.»

Republican State Representative Sarah Lightner, whose district includes Marshall, said the news from Ford «came completely out of the blue.»

< p>He said, “We're still gathering information because there are a lot of moving parts. Obviously, strikes could probably have something to do with this.”

There were some local protests against the plant's location and criticism of the Chinese company's involvement in the plant, which will be wholly owned. subsidiary of Ford.

Ford said the subsidiary will own the plant and employ the workers, while China's Contemporary Amperex Technology (CATL) will supply the technology, some equipment and labor.