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Ford is reportedly working on a $3.5 billion battery plant in Michigan

Ford is preparing to announce a $3.5 billion battery plant in Marshall, Michigan, according to a report of Automotive news. In an advisory obtained by the outlet, the automaker says it will unveil the factory news Monday in partnership with China’s Contemporary Amperex Technology (CATL), a company that makes lithium iron phosphate batteries for electric vehicles (EVs), including the Mustang Mach-E.

While Ford still hasn’t confirmed these plans, Michigan reportedly offered $1 billion in incentives to attract the automaker. The plant is expected to bring 2,500 jobs to the area.

Still, Ford is reportedly going ahead with the project. It could implement a “new ownership structure” that would allow the automaker to partner with the Chinese company and still qualify for the federal tax credit, it said. a report of Bloomberg. This could mean Ford taking 100 percent ownership of the plant itself, while CATL controls operations at the plant and retains the technology it uses to build the batteries.

Rumors about the new facility have been swirling for months, with a report of The Detroit News indicating that Ford initially wanted to bring the battery factory to Virginia. However, Governor Glenn Youngkin rejected building it in the state because of its ties to China, with his spokesman noting at the time that it “would serve as a front for the Chinese Communist Party, which could jeopardize our economic security and the personal privacy of Virginians.” to take. “

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