Ford has resumed work on an electric vehicle battery plant in Michigan, but the plant will be smaller than originally planned.
Ford halted work at the site in late September amid the United Auto Workers strike, saying at the time that the company needed to reevaluate the scope of the project. The automaker had initially planned to employ up to 2,500 workers at the plant when the plant opened production in 2026.
Now Ford plans to employ only about 1,700 people, the automaker announced Tuesday.
“We are right-sizing as we balance investment, growth and profitability,” Ford said in an announcement.
Last month, Ford had laid off some workers building the F-150 Lightning electric pickup truck. Competitor General Motors also said yes postpone adding additional production capacity for its electric Chevrolet Silverado EV citing slow-growing demand.
By producing batteries in the United States, the plant is expected to help Ford take advantage of electric vehicle tax credits tied, in part, to domestic battery production.
Plans called for the plant to operate as a wholly owned subsidiary of Ford Motor Co., but build batteries using “knowledge” and services from Chinese company Contemporary Amperex Technology Co., or CATL. CATL is the largest battery manufacturer in the world and also supplies batteries to Tesla.
Ford is also building two batteries plants in Kentucky and Tennessee. The automaker is building these plants with SK Innovations, a company based in South Korea. Ford has said it plans to produce two million electric vehicles globally by the end of 2026.