DETROIT/WASHINGTON, May 29 (Reuters) - Ford

Executive Chair Bill Ford on Thursday sounded the alarm over the

potential for the U.S. government to eliminate production tax

credits that support the manufacturing of electric vehicle

batteries using Chinese technology.

The disappearance of the credits would threaten Ford's

projected $3 billion investment in a Marshall, Michigan, plant

that is 60% complete and slated to employ 1,700 workers.

"If it doesn't stay, it will imperil what we do in

Marshall," Ford said at a policy conference of the factory 100

miles (161 km) west of Detroit. "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."

Ford said the plant, which was announced in February 2023,

is expected to begin producing batteries in 2026.

The tax-reform bill passed by the U.S. House of

Representatives this month could bar lucrative tax credits for

batteries produced with components made by some Chinese

companies or under a license agreement with Chinese firms.

Ford's factory would make battery cells using tech from

Chinese battery giant CATL.

"I'm spending a lot of time talking about that with

politicians. It's a federal issue, but it's also a state issue,"

Ford said on Thursday.

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, it has drawn scrutiny from some

lawmakers for its ties to the Chinese company.

The company touted a letter from more than 100 Marshall-area

business owners, school leaders, elected officials calling on

Congress to retain the tax incentives, which noted the area has

"lost thousands of jobs over the past several years."

The House bill would also end a $7,500 tax credit for new

EVs, impose a new $250 annual fee on EVs for road repair costs

and repeal vehicle emissions rules designed to prod automakers

into building more EVs. The U.S. Senate plans to take up the

bill and make changes in the coming month.