By Nora Eckert

DETROIT (Reuters) -Ford Executive Chair Bill Ford on Thursday sounded the alarm on the potential for Washington to do away with production tax credits that support the manufacturing of electric vehicle batteries.

The disappearance of the credits would threaten Ford’s investment in a Marshall, Michigan, plant. "If it doesn’t stay, it will imperil what we do in Marshall," Ford said at a policy conference in the state.

“We made a certain investment based upon a policy that was in place. It’s not fair to change policies after all the expenditure has been made,” he said.

The tax-reform bill passed by the House of Representatives this month could bar lucrative tax credits for batteries produced using Chinese technology. Ford’s factory, now under construction, would make battery cells using tech from Chinese battery giant CATL.

Ford received a reduced incentive package from Michigan last year for the battery plant after it cut expected production there to match slowing demand for electric vehicles. Since the automaker announced the plant in 2023, it has drawn scrutiny from some lawmakers for its ties to the Chinese company.