By Greg Gao

(JW Insights) Sep 26 -- CATL, the world's largest electric vehicle battery manufacturer, refuted media reports of its partner Ford Motor halting the construction of a $3.5 billion electric vehicle battery plant in the United States, and stated the cooperation project is progressing as usual, according to various Chinese news outlets on September 26.

"It is false news, and construction is smoothly underway," China News Service reported, citing an employee of the Ningde-based battery maker's securities department.

The Wall Street Journal reported September 25 that Ford Motor is pausing construction of a battery plant in Marshall, Mich., where it had planned to produce lower-cost cells using technology from the Chinese battery maker CATL.

There were media reports earlier that the US automaker halted work and limited spending on the factory until it is confident in its ability to operate it competitively.

The unusual move comes as Ford has faced months of scrutiny from lawmakers about its work with CATL. The plant itself would be owned and operated by Ford.

The lower-cost batteries produced at the plant have been central to Ford’s strategy to reduce EV price tags for drivers. Ford had planned for the battery packs using CATL technology to supply its Mustang Mach-E electric SUV and F-150 Lightning EV pickup, said WSJ.

Ford is also negotiating a new labor deal with the United Auto Workers union, which many analysts say is likely to result in higher labor costs for the automaker in the US, according to media report.