Michigan board of directors approves $400 million for EV battery development

LANSING, Mich. (AP) — A Michigan economic development committee on Wednesday approved more than $400 million in state incentives for two battery plants that will cost an estimated $4 billion and create 4,500 jobs for the state.

Subject to approval by state legislatures, the stimulus packages would withdraw from a fund that was formed less than a year ago to help the automotive state land major business expansions in the wake of news based in Dearborn Ford Motor Co. would begin building electric vehicles Vehicle battery factories in other states.

“We compete globally to ensure Michigan remains at the forefront of automotive manufacturing. Investments like the ones we announced today change the rules of the game,” Michigan Gov. Gretchen Whitmer said in an interview with The Associated Press on Wednesday.

A Michigan energy storage company, Our Next Energy, would be allocated $236 million under the agreement for a project costing up to $1.6 billion in the Detroit suburb of Novi. A $175 million incentive allocation will go to a $2.4 billion facility that Chinese manufacturer Gotion is planning for Big Rapids in northern Michigan. The main functions of the plants would be the construction of components for electric vehicle batteries.

President Joe Biden presented his administration’s efforts to promote electric vehicles an appearance at the Detroit Auto Show last month when he said that Michigan is “building the future of the electric vehicle.”

Under his anti-inflation law, The batteries in electric vehicles must be built in North America to be eligible for a federal tax credit of up to $7,500.

The Michigan Economic Development Corporation board passed the stimulus on Wednesday, but final approval of the stimulus packages must come from the House and Senate budget committees. According to a spokesman, a timeline for the approval of the committees is not known.

The $2.4 billion Gotion project, planned on a 523-acre site in Big Rapids, would create 2,350 jobs at an average wage of $29.42 an hour, according to the company’s proposal. The facility will include a cathode facility and an anode facility, two components critical to electric vehicle batteries. The board also approved a 30-year Renaissance Zone, approved by county officials last week, that will save the company an estimated $540 million.

Next Energy’s planned 59,589-square-foot facility in Novi will cost $1.6 billion and is expected to create 2,112 new jobs. The plant will manufacture “battery packs for commercial and personal electric vehicles” according to the company’s proposal.

Quentin L. Messer Jr., CEO of the state economic development company, said the $400 million stimulus packages are performance-based in the event a company fails to meet its targets.

“If the company performs but subsequently has a non-performance and that non-performance is not subsequently remedied, that state tax money will be returned to Michigan taxpayers,” Messer said during an interview with the AP.

The Strategic Outreach and Attraction Reserve Fund was passed by the Republican-controlled Legislature last year with a budget of $1.5 billion.

To date, $794 million in incentives from the SOAR funds have been used, including a Allocation of $666 million to General Motor projects in March and another $101 million in July for Ford projects. legislature approved an additional $846 million last week replenish the fund.

“Michigan has to fight for the jobs of tomorrow, and the only way to do that is to be in the game,” Curtis Hertel, the top Democrat on the Senate Appropriations Committee, told the AP last week.

https://www.woodtv.com/news/michigan-board-approves-400-million-to-advance-ev-batteries/ Michigan board of directors approves $400 million for EV battery development

Dais Johnston

TheHitc is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – admin@thehitc.com. The content will be deleted within 24 hours.

Related Articles

Back to top button