04:30 PM EDT, 07/09/2024 (MT Newswires) -- Ford Motor ( F ) will receive a smaller incentive package supporting the construction of a battery production facility in Michigan after the automaker late last year scaled back plans to build electric vehicles, according to media reports on Tuesday.

The Michigan Strategic Fund is cutting its incentive grant for a new Ford plant now under construction in Marshall by at least 60% to a maximum of $409 million after the company said it would reduce its investment, capacity, and employment amid falling consumer demand for electric vehicles.

The reduced grant was announced by Quentin Messer Jr, chief executive of the Michigan Economic Development Corp, which manages the grant program, during a virtual briefing on Tuesday.

The BlueOval Battery Park is slated to open in 2026 and will use technology licensed from Chinese battery producer Contemporary Amperex Technology Co. The state agency issued a $1.035 billion grant supporting the project in February 2023.

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