FORD PAUSING CONSTRUCTION OF MICHIGAN BATTERY PLANT AMID CONTRACT TALKS WITH AUTO WORKERS UNION

Ford Motor Co. said that it’s pausing construction of a $3.5 billion electric vehicle battery plant in Michigan until it is confident it can run the factory competitively.

The move comes as the company is in the midst of national contract talks with the United Auto Workers union, which wants to represent workers at battery factories and win them top wages.

The UAW went on strike against Ford and the other two Detroit automakers, General Motors and Stellantis, on Sept. 15. The union at first targeted one vehicle assembly plant from each automaker, and last week expanded it to parts warehouses. But Ford was spared from the expansion because the union said progress was being made in negotiations.

In February, Ford announced plans to build the plant in Marshall, Michigan, employing about 2,500 workers to make lower-cost batteries for a variety of new and existing vehicles. Marshall is about 100 miles (160 kilometers) west of Detroit and is near two major interstate highways.

But Ford spokesman TR Reid confirmed that plant construction has been paused and spending has been limited on it.

“There are a number of considerations,” he said in an email. “We haven’t made any final decision about the planned investment there.”

There also has been local opposition to the factory location, and criticism of a Chinese company’s involvement in the plant, which would be run by a wholly owned subsidiary of Ford.