Ford (F) is reducing planned production at a new $3.5 billion electric vehicle (EV) battery plant in Michigan because of falling demand for EVs, the company's efforts to lower expenses, and the labor costs associated with the 澳洲幸运5官方开奖结果体彩网:new U✅nited Auto Workers (UAW) contr♏act.

The carmaker said Tuesday that, as part of its "re-timing and resizing" of some EV investments, it would be "right-sizing" the BlueOval Battery Park Michigan factory in Marshall. Ford indicated that the facility's production capacity would be lowered to 20 gigawatt hours, from the originally planned 35 gigawatt hours.

In addition, only 1,700 workers would be💛 employed there, rather than the initial estimate of 2,500. BlueOval Battery Park Michigan is 🧸expected to begin making lithium iron phosphate (LFP) battery cells in 2026.

The move is part of Ford's plan announced last month to eliminate or delay approximately $12 billion in new EV manufacturing capacity. Included in that was postponing the construction of another battery plant in Kentucky.

Spokesman Mark Truby explained that, while the company remained bullish on EVs and its long-term EV strategy, it was clear that the growth hasn't been up to the anticipated level. Truby added that the UAW agreement factored into the Michigan factory decision. The company previously suggested the deal would add $850 to $900 to the price of a newly built vehicle.

Ford shares closed 1.5% lower on Tuesday, and are down nearly 13% for the year.