Ford Motor announced that it has temporarily halted work on its $3.5 billion electric vehicle (EV) battery plant in Michigan. The decision was attributed to concerns about the automaker’s ability to operate the plant competitively.

Ford’s decision to pause work on the Michigan-based EV battery plant comes at a critical juncture in contract negotiations with the United Auto Workers (UAW). While the exact reason for the pause was not disclosed, Ford emphasized that it had not yet made a final decision regarding the planned investment.

UAW President Shawn Fain strongly criticized Ford’s move, characterizing it as “a shameful, barely-veiled threat by Ford to cut jobs.” Fain emphasized that the UAW’s primary objective was to ensure a just transition to electric vehicles, accusing Ford of prioritizing cost-cutting measures instead.