Ford is pausing work on a new, $3.5 billion electric vehicle battery plant in Michigan, even as the transition to electric vehicles has become a major sticking point in a United Auto Workers strike against automakers Ford,

Ford Motor Co. said Monday that it’s pausing construction of a $3.5 billion electric vehicle battery plant in Michigan until it is confident it can run the factory competitively. The move comes as the company is in the midst of national contract talks with the United Auto Workers union,

Ford Motor said on Monday it has paused work on a $3.5 billion electric vehicle battery plant in Michigan, citing concerns about its ability to competitively operate the plant at a time when it remains locked in broader contract negotiations.

Ford Motor Chief Executive Jim Farley on Friday accused the United Auto Workers union of holding up a new U.S. labor agreement in a bid to force the automaker to pay workers at new battery plants the same top wages as workers at assembly plants.

Farley made his comments after learning Ford was a strike target again in a briefing during what is usually a highly sensitive and secretive process.

I believe we could have reached a compromise on pay and benefits but so far the UAW is holding the deal hostage over battery plants,” Farley said. “Keep in mind these batte

As the autoworker strike enters week three, Ford is arguing the union is trying to use the company’s forthcoming battery plants as leverage.