Ford Motor Co. is reducing capacity and hiring plans at a battery plant it’s building in Michigan because it sees weaker demand for electric vehicles.

The automaker said Tuesday that it’s resuming construction of the Marshall factory that was paused two months ago, but it will now produce enough batteries to power about 230,000 EVs a year, down from a previous plan of 400,000. Employment at the plant, due to open in 2026, will now be 1,700, according to a statement. It originally planned to hire 2,500 workers when it was announced in February.