Ford and Stellantis Adjust EV Strategies Amid Slowing Demand

Ford scales back Michigan battery plant plans, while Stellantis enters talks with Chinese battery-maker CATL for European factory

Ford is scaling back its plans for a $3.5 billion battery plant in Michigan due to slowing electric vehicle demand and rising labor costs. The plant, which was initially expected to create 2,500 jobs, will now only create 1,700 jobs and its annual battery cell output will drop from enough for 400,000 vehicles per year to about 230,000.
Stellantis, the owner of Vauxhall, is in talks with Chinese battery-maker CATL to build a European factory for car cells. The deal comes despite warnings by Stellantis' CEO about the threat of Beijing’s dominance in the motor industry. The joint venture aims to make cheaper power cells to help lower car prices.
Ford's decision to scale back its Michigan plant is part of the company's plans to cut or delay about $12 billion in previously announced EV investments. The company will also postpone construction of another electric vehicle battery plant in Kentucky.
Stellantis and CATL have signed a preliminary agreement for the supply of battery cells and modules for Stellantis' electric vehicle production in Europe. The two companies are also considering a possible investment to set up a 50-50 joint venture to support the automakers' electrification strategy.
Ford's decision to scale back its EV battery plant plans reflects a broader trend in the auto industry. U.S. electric vehicle sales are still growing at a high rate, but not as fast as they were last year, causing many automakers to slow their battery and assembly plant building plans.