Ford taps the brakes on Biden's EV push

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Sep 26, 2023 View in browser   By Arianna Skibell The Ford logo is displayed in Colma, Calif. | Justin Sullivan/Getty Images Ford has hit pause on building an electric vehicle battery plant in Michigan, adding fuel to the larger political and economic battle over President Joe Biden’s climate goals. The $3.5 billion facility would be the first to manufacture next-gen lithium, iron and phosphate batteries on U.S. soil — a major boon for Biden’s twin goals of slashing planet-warming pollution and boosting domestic manufacturing. It would also employ some 2,500 unionized workers — a key feature for a labor-friendly president. Ford’s decision to halt work on the plant comes as the United Auto Workers approaches week three of its strike against the company, along with General Motors and Stellantis. Auto workers are demanding higher wages to make up for years of employee concessions to management, amid a shift to EVs that threatens a long-term erosion of UAW jobs. The union characterized the pause as a “shameful, barely veiled threat by Ford to cut jobs,” writes Hannah Northey. “Closing 65 plants over the last 20 years wasn’t enough for the Big Three, now they want to threaten us with closing plants that aren’t even open yet,” UAW President Shawn Fain said. The facility also looms large in Republican messaging against Biden’s green agenda. GOP lawmakers object to Ford’s plan to use Chinese battery technology, and many are calling for a permanent cancellation of the plant, write James Bikales and Kelsey Tamborrino. So are some residents of Marshall, Mich., who launched a lawsuit to halt the facility earlier this year, citing potential environmental impacts to the Kalamazoo River. But why? Ford stopped short of offering a concrete reason for the pause, but said work on the facility would resume when company leadership is confident in “our ability to competitively operate the plant.” Democratic Gov. Gretchen Whitmer’s office tied the move to the UAW strike. “Ford has been clear that this is a pause, and we hope negotiations between the Big 3 and UAW will be successful so that Michiganders can get back to work doing what they do best,” Whitmer’s press secretary Stacey LaRouche said. Today, Biden joined a group of striking autoworkers on a picket line in Michigan, telling them through a megaphone that they “deserve a significant raise.”   It's Tuesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net. And folks, let’s keep it classy.   GROWING IN THE GOLDEN STATE: POLITICO California is growing, reinforcing our role as the indispensable insider source for reporting on politics, policy and power. From the corridors of power in Sacramento and Los Angeles to the players and innovation hubs in Silicon Valley, we're your go-to for navigating the political landscape across the state. Exclusive scoops, essential daily newsletters, unmatched policy reporting and insights — POLITICO California is your key to unlocking Golden State politics. LEARN MORE.     Listen to today’s POLITICO Energy podcast Today in POLITICO Energy’s podcast: Catherine Morehouse breaks down how the potential government shutdown could reshape the Federal Energy Regulatory Commission and what a three-person panel can accomplish. Power Centers President Joe Biden and top Democrats during the signing ceremony for the Inflation Reduction Act on Aug. 16, 2022. | Drew Angerer/Getty Images Immune to a government shutdown Work on the Biden administration’s signature climate change law won’t screech to a halt if the government shuts down at midnight Saturday, write Kevin Bogardus and Robin Bravender. That's because the measure isn’t subject to the same spending limitations as other government programs that are funded on a per-year basis. Many climate law programs can continue even if lawmakers don’t reach a spending agreement before the fiscal year ends Oct. 1. Yet another heat-related danger New research finds that warmer weather can increase the risk of substance-related hospitalizations, writes Chelsea Harvey. The finding adds to an increasingly long list of dangers associated with heat. Warmer weather is linked with an increase in violent crime, even during the winter. It’s correlated with increased incidents of hate speech, harassment and discrimination. High temperatures have been known to have adverse effects on mood, increasing irritability and symptoms of depression. Will the EU abandon its Green Deal? As the 2024 European election approaches, voters are turning away from Green parties amid a rising tide of right-wing populism and anti-EU sentiment, writes Rasmus Grand Berthelsen. Opinion polls indicate large gains for hard-right parties in countries like Germany and Italy. Voters attribute much of their dissatisfaction with the EU’s climate transition policies. In Other News Fusion dreams: Energy Secretary Jennifer Granholm said it's "not out of the realm of possibility" that the U.S. could create a nuclear fusion energy facility within 10 years. What goes down ... : How carbon stored underground could find its way back into the atmosphere. Electric future: How giant batteries helped the U.S. power grid eke through the summer.   DON’T MISS POLITICO’S TECH & AI SUMMIT: America’s ability to lead and champion emerging innovations in technology like generative AI will shape our industries, manufacturing base and future economy. Do we have the right policies in place to secure that future? How will the U.S. retain its status as the global tech leader? Join POLITICO on Sept. 27 for our Tech & AI Summit to hear what the public and private sectors need to do to sharpen our competitive edge amidst rising global competitors and rapidly evolving disruptive technologies. REGISTER HERE.     Subscriber Zone A showcase of some of our best subscriber content. The smoke stacks at American Electric Power's Mountaineer coal power plant in New Haven, W.Va., are shown. | AFP via Getty Images Capping global warming at 1.5 degrees Celsius is still possible, but requires steep cuts in the energy sector's greenhouse gas emissions, according to a new report by the International Energy Agency. The Interior Department will postpone an offshore oil lease sale that was scheduled for Wednesday — the latest twist in a contentious lease sale that has already been the subject of multiple lawsuits. North Carolina’s new budget blocks the state from joining the Northeast’s carbon cap-and-trade system, increases wind energy permitting costs, and hikes registration fees for EV owners. That's it for today, folks! Thanks for reading.   Follow us on Twitter Arianna Skibell @ariannaskibell   Follow us

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