Last year the state won big multi-billion-dollar projects for electric vehicle manufacturing including large state incentive packages. It garnered criticism along the way; watchdog group Good Jobs First called Michigan’s aggressive approach the biggest “megadeal spending spree” in U.S. history.
But those investments are gaining national spotlight in the new year.
A recent CNBC story highlighted Michigan among the top three states that will “dominate electric vehicle battery manufacturing in the United States by 2030.”
Michigan, Georgia and Kentucky will be able to manufacture between 97 and 136 gigawatt hours’ worth of EV batteries per year by 2030, according to plans they have laid out, according to a November 2022 report from the Argonne National Laboratory.
The U.S. Department of Energy highlighted the three states as having the highest predicted growth.
Thanks to a wave of new planned vehicle battery plants, North America’s total battery manufacturing capacity is to expand from 55 gigawatt-hours per year in 2021 to nearly 1,000 gigawatt hours by 2030, according to the Office of Energy Efficiency and Renewable Energy.
Planned production capacity across continent by then will be capable of supporting the manufacture of roughly 10 to 13 million all-electric vehicles per year.
The electric vehicle market ended the year on a high note. From January to November the national market share nearly doubled from 2.5% to 5.1%, according to Edmunds data. The overall green vehicle market, including hybrids, now makes up 10% of the U.S. car market.
Related: Buying new electric vehicle? Here’s how to get up to $7,500 tax credit.
Gov. Gretchen Whitmer and the Michigan Economic Development Corporation are revving their engines for a victory lap.
The governor’s office released a statement noting the state attracted over $14 billion in electric vehicle and battery investments while developing programs to train and employ talent in the electric vehicle and mobility sector.
“For generations, Michiganders have stepped up to get the job done by embodying the kind of grit, determination and work ethic needed to keep the world moving forward,” Whitmer said. “As we work to make an electrified future a reality, it’s no surprise that once again, Michigan is being recognized as a leader in shepherding in this new evolution. We’re ready to build on our proud legacy and automotive heritage here in Michigan to once again usher in a greener, more sustainable and electrified future in 2023 and beyond.”
The Strategic Outreach and Attraction Reserve, or the SOAR fund, has been fueling this evolution. Michigan lawmakers created a $1 billion pot of incentive funds to create a competitive edge after the state lost a bid for Ford’s mega campus, which landed in Tennessee.
Last year, Michigan pledged nearly $2 billion in state incentives to win these five big ticket projects:
- General Motors plans to invest $7 billion at four manufacturing sites in Orion Township and the Lansing area, creating 4,000 jobs. Michigan approved $666.1 million in grants and a $158 million tax incentive for the project.
- LG Energy Solutions is planning a $1.7 billion expansion of a Holland battery plant that could create up to 1,200 jobs. Michigan approved $56.5 million in grants and a $132.6 million tax incentive.
- Ford Motor Company plans to invest $2 billion in three Michigan plants and create 3,200 jobs. The state approved a $100.8 million grant and a $34.4 million tax incentive.
- Gotion plans to invest $2.4 billion in two battery plants near Big Rapids creating 2,350 jobs. Michigan approved $175 million in grants and a $400 million tax incentive.
- Our Next Energy, a Detroit startup, plans to spend $1.6 billion on an electric vehicle gigafactory in Wayne County that will create 2,112 jobs. Michigan approved a $200 million grant and a $21.6 million tax exemption.
At its last meeting of the year, the Michigan Strategic Fund approved a $4.5 million grant and a tax incentive worth $1.9 million for Lear Corporation.
The global auto technology company plans to invest $112 million in three Michigan facilities in Independence Township in Oakland County, Traverse City and Sterling Heights in Macomb County.
Other electric vehicle expansions included the Canadian charging company FLO’s $3 million investment in Auburn Hills to build its first U.S. facility.
“2022 was a year like no other, as Michigan welcomed transformational investments that further demonstrated our leadership in the mobility industry,” MEDC CEO Quentin L. Messer Jr. said in the statement from the governor’s office.
“It should come as no surprise that Michigan is being recognized as a leader and serious competitor as we move toward an electrified future. We realize that Team Michigan, from Gov. Whitmer to bipartisan legislative leaders to local elected officials and economic development partners, must earn daily the ability to dominate. In 2023 and beyond, we must and will get better, together across both peninsulas, and we will continue putting the world on notice that Michigan aims to dominate the sector that it created.”
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