Ford is scaling back plans for a $3.5 billion battery plant in Michigan that it announced in February due to slower-than-expected EV adoption, rising labor costs, and efforts to cut costs. The plant's production capacity will be reduced by 43% to 20 gigawatt hours per year and expected employment will fall from 2,500 jobs to 1,700 jobs. Global automakers are retreating from aggressive EV expansion plans as demand has not met expectations due to high costs and supply chain and technology challenges. The plant will still aim to open in 2026 and produce lithium iron phosphate batteries, though construction was halted for two months during UAW negotiations where significant wage increases were approved.