Ford will build large pickups at a Canadian factory that it had previously slated to produce electric vehicles, sales of which have slowed in recent months.
A new report estimates that the company led by Elon Musk accounted for just under half of all battery-powered vehicles sold in the second quarter of the year.
High interest rates, economic uncertainty and a cyberattack appear to have dampened sales in the three months between April and June.
The agreement, if ratified, will cover 1,600 workers making batteries for General Motors in Ohio. The union said it would be a model for efforts elsewhere.
Automakers are exploring energy storage as a way to help utilities and save customers money, turning an expensive component into an industry asset.
More efficient manufacturing, falling battery costs and intense competition are lowering sticker prices for battery-powered models to within striking distance of gasoline cars.
Automakers and dealers are starting to offer discounts, low-interest loans and other incentives to lure buyers as the supply of cars grows.
Automakers in the United States and their supporters welcomed President Biden’s tariffs, saying they would protect domestic manufacturing and jobs from cheap Chinese vehicles.
The gasoline-powered Malibu was the last affordable sedan sold by Chevrolet, the General Motors brand, in the United States.
The carmaker dismissed hundreds of employees in a unit that was critical to its success and seen as important to the future of electric vehicle sales in the United States.