Ford Slams Trump’s Tax Credit Cuts As Unfair, Threatening Battery Plant

Bill Ford says its unfair if credits are removed even after the carmaker has invested billions

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Tariffs aren’t the only thing on automakers’ minds these days. Ford is now raising alarm bells, warning that if tax credits for local battery producers are axed, its EV battery plant in Michigan could be at risk. The facility, known as BlueOval Battery Park Michigan, is currently employing 1,700 workers, with plans to add another 800 by March 2027. The plant is a crucial piece of Ford’s strategy to ramp up electric vehicle production, but it’s all dependent on those tax credits staying in place.

At the recent Mackinac Policy Conference in Michigan, Ford executive chair Bill Ford voiced his concerns, noting that “it’s not fair to change policy after all the expenditures have been made.” He added that because “the production tax credits seems to be up for grabs,” the site could be “imperiled,” as reported by TTNews.

Read: Ford’s EV Sales Just Fell Off A Cliff And Discounts Didn’t Make A Dent

Recently passed by the House, the Trump administration’s ‘One Big Beautiful Bill Act’ aims to eliminate most of the clean energy tax credits introduced under Biden’s Inflation Reduction Act. Many of these credits were designed to build a domestic EV supply chain and encourage consumers to purchase electric vehicles.

Under the Inflation Reduction Act, billions of dollars in private investments were funneled into EV manufacturing in the U.S. The Electrification Coalition reports major investments in states like North Carolina ($25.4 billion), Georgia ($24.5 billion), and Tennessee ($12.4 billion), all designed to jumpstart the transition to electric mobility.

The New Bill’s Impact on EV and Battery Manufacturing

If the new bill passes, it will not only phase out the $7,500 federal EV tax credit, but it will also cut off the manufacturer credit for battery producers after 2031. The bill also comes with stricter rules that limit the use of Chinese components and materials in U.S. manufacturing.

“Politicians can agree or disagree about whether those things are desirable,” Ford said. “But don’t change the rules once you’ve already made the investment, because that to me is just a question of fairness. And that’s unfair.”

Ford’s Michigan battery plant is also tied to a licensing agreement with CATL, a Chinese battery maker. While Ford holds full control over the manufacturing process, production, and workforce, it’s tapping into CATL’s expertise to help with factory equipment installation and to provide critical battery technology know-how.