Construction of BlueOval Battery Park facility 20% complete

Michigan slashing incentives to Ford
because of scaled back project

(July 10, 2024) MARSHALL, Mich. — While BlueOval Battery Park Michigan remains on track to begin production of lithium iron phosphate (LFP) batteries in 2026 for Ford’s future electric vehicles the state of Michigan is slashing an incentives package by more than half after the automaker dramatically reduced the scope of its electric vehicle projects to match demand.

Ford will receive tax incentives worth a maximum of $409.1 million instead of $1.03 billion for its EV battery plant in Marshall, according to a revised incentives package approved Tuesday by the Michigan Strategic Fund.

The reductions are in step with Ford’s scaling back of the project from $3.5 billion and 2,500 jobs to the new range of $2.5 billion-$3 billion and 1,700-2,100 jobs, according to a breakdown provided by the Michigan Economic Development Corp.

“The restructured incentive package will appropriately and necessarily address the project's rightsizing, balancing the company's investment and growth in Michigan,” the MEDC said in a memo.

In addition to the Renaissance Zone rescission, the state cut the $210 Critical Industry Program grant to a minimum of $141 million. The $185.3 million in Strategic Site Readiness Program grants to the Marshall Area Economic Development Alliance was unchanged.

Ford anticipates that BlueOval Battery Park Michigan will now create more than 1,700 jobs. The plant’s leadership team is forming now, headed by Scott Davis, CEO of BlueOval Battery Michigan LLC, a wholly owned Ford subsidiary. Davis is a 17-year resident of Marshall.

BlueOval Battery Park Michigan plans an annual LFP battery production capacity of approximately 20 gigawatt hours, with production starting in 2026. The batteries built at the facility will power Ford’s future electric vehicles.

“BlueOval Battery Park Michigan will play an important role in our plan to help make electric vehicles more accessible and affordable by producing low-cost LFP batteries in the U.S. and not relying on imports,” said Lisa Drake, Ford’s vice president of electric vehicle programs and energy supply chain. “We continue to make great progress establishing America’s first automaker-backed LFP battery plant right here in Michigan.”

Construction of BlueOval Battery Park Michigan is approximately 20% complete. The main facility will be nearly 1.8 million square feet, comprising a cell plant and a pack plant. Additional support buildings will take the total operation to approximately 2 million square feet.

BlueOval Battery Park Michigan will span 500 acres, with another 230 acres originally set aside for Ford now available to the Marshall Area Economic Development Authority for future commercial activity.

Ford ensured that another 245 acres of the site along the Kalamazoo River would be placed in a conservation easement to be protected against industrial development and preserved for generations. Ford Philanthropy donated $100,000 to Calhoun County to develop a plan for the community to best utilize this land along the river.

Ford’s aspiration is to protect the environment and local community, including the Kalamazoo River. To help minimize and avoid stormwater runoff, the Marshall Area Economic Development Authority is installing a stormwater management system to serve the entire campus. 

Sources: Ford, Automotive News