More money pledged from Michigan for a $3.5 billion electric vehicle battery plant after Ford pauses

More Funding Allocated for Michigan Electric Vehicle Battery Plant

DETROIT — Michigan has pledged additional funding for the development of a $3.5 billion electric vehicle battery plant after Ford Motor Co. announced a pause in construction to ensure competitive operation.

Ford’s decision to delay construction comes amid national contract negotiations with the United Auto Workers union, which seeks to represent workers at battery factories and secure top wages for them.

Additional Funding Approved

On Tuesday, a Michigan economic development board voted to provide an extra $65 million for the megasite, which will be used for “assistance for site readiness activities,” according to a board memo.

During the meeting, Quentin Messier, president of Michigan Economic Development Corp., stated, “We fully expect that Ford will continue to develop the BlueOval Battery Park Michigan site and we need to allow the Ford Motor Company and UAW to continue their negotiations.”

Union Strike and Plant Details

The United Auto Workers union went on strike against Ford, General Motors, and Stellantis on September 15. While the strike initially targeted one vehicle assembly plant from each automaker, it was expanded to include parts warehouses. However, Ford was exempted from the expansion due to progress made in negotiations.

In February, Ford announced plans to construct the plant in Marshall, Michigan, employing approximately 2,500 workers to produce lower-cost batteries for various new and existing vehicles. The plant is located about 100 miles west of Detroit and is near major interstate highways.

Construction Delay and Union Response

Ford spokesman TR Reid confirmed on Monday that plant construction has been paused and spending has been limited. He stated, “We haven’t made any final decision about the planned investment there.”

UAW President Shawn Fain criticized Ford’s move, calling it “a shameful, barely-veiled threat by Ford to cut jobs” at a plant that has not yet opened. Fain emphasized the union’s request for a fair transition to electric vehicles and accused Ford of prioritizing lower wages.

Sustainable Development Goals

1. Goal 7: Affordable and Clean Energy
2. Goal 8: Decent Work and Economic Growth
3. Goal 9: Industry, Innovation, and Infrastructure
4. Goal 11: Sustainable Cities and Communities
5. Goal 13: Climate Action

Plant Details and Battery Production

The factory was scheduled to begin battery production in 2026, with the capacity to supply battery cells for 400,000 vehicles annually. Ford planned to produce batteries using a lithium-iron-phosphate (LFP) chemistry, which is cheaper than the current nickel-cobalt-manganese chemistry used in many electric vehicle batteries. Consumers would have the option to choose between a battery with lower range and cost or pay more for higher range and power.

Factors Affecting the Project

While the state had allocated nearly $1.7 billion in incentives for the project, not all of the funds have been disbursed, and there are clawbacks in place. Republican State Rep. Sarah Lightner, the minority vice chair of the House Appropriations committee, suggested that the strikes may have influenced Ford’s decision.

According to analyst Sam Abuelsamid, opposition to the plant among residents of a conservative rural area in southern Michigan may have also played a role. He stated, “They don’t want the factory, they don’t want the traffic, and they don’t want anything associated with a Chinese company.”

Earlier this year, Virginia withdrew from consideration for the same Ford plant due to concerns raised by Republican Governor Glenn Youngkin about potential national security risks associated with the project’s connection to the Chinese Communist Party.

Contributors

• Joey Cappelletti – Associated Press writer in Lansing, Michigan
• David Koenig – Associated Press writer in Dallas

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 8: Decent Work and Economic Growth

The article discusses the delay in the construction of an electric vehicle battery plant by Ford Motor Co., which is connected to economic growth and job creation.

SDG 9: Industry, Innovation, and Infrastructure

The article mentions the development of a battery plant and the need for infrastructure upgrades to support the production of electric vehicles.

SDG 11: Sustainable Cities and Communities

The article highlights the importance of sustainable transport systems and road safety in the context of the development of a battery plant.

SDG 12: Responsible Consumption and Production

The article mentions the production of lower-cost batteries for electric vehicles, which aligns with the goal of sustainable resource management.

SDG 13: Climate Action

The article discusses the use of lithium-iron-phosphate chemistry in batteries, which can contribute to reducing greenhouse gas emissions and mitigating climate change.

SDG 16: Peace, Justice, and Strong Institutions

The article briefly mentions national contract talks with the United Auto Workers union, highlighting the importance of effective and transparent institutions in labor negotiations.

2. What specific targets under those SDGs can be identified based on the article’s content?

Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation

The delay in the construction of the battery plant by Ford Motor Co. reflects the need for economic productivity and innovation in the electric vehicle industry.

Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes

The development of a battery plant requires infrastructure upgrades and the adoption of sustainable technologies to support the production of electric vehicles.

Target 11.2: By 2030, provide access to safe, affordable, accessible, and sustainable transport systems for all, improving road safety, notably by expanding public transport

The article emphasizes the importance of sustainable transport systems and road safety in the context of the battery plant development.

Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources

The production of lower-cost batteries for electric vehicles aligns with the goal of sustainable resource management.

Target 13.2: Integrate climate change measures into national policies, strategies, and planning

The use of lithium-iron-phosphate chemistry in batteries can contribute to climate change mitigation by reducing greenhouse gas emissions.

Target 16.6: Develop effective, accountable, and transparent institutions at all levels

The mention of national contract talks with the United Auto Workers union highlights the importance of effective and transparent institutions in labor negotiations.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

No specific indicators are mentioned or implied in the article that can be used to measure progress towards the identified targets. The article mainly focuses on the delay in construction and the negotiations between Ford Motor Co. and the United Auto Workers union, without providing specific data or metrics for measuring progress.

4. SDGs, Targets, and Indicators