(Source: MIRS.news, Published 02/13/2023) (ROMULUS) – Ford Motor Company is dropping $3.5 billion to create an electric vehicle battery park in Marshall, which Michigan's economic development corporation is hoping to back with a $210 million state-funded attraction award.
Monday, at the Ford Battery Center of Excellence in Romulus, Ford Chief Executive Officer Jim Farley announced how the $3.5 billion investment will be a "key part" in the more than $50 billion the automobile manufacturer is spending to advance the United States' position in the EV revolution. As part of the deal, Ford is also receiving $772 million over 15 years in real and personal property tax reductions through a Renaissance Zone grant. The Jobs for Michigan Investment Fund Loan would also kick in $36 million.
Other speakers at today's press conference included Ford Executive Chair Bill FORD, Gov. Gretchen Whitmer and Marshall Mayor Jim Schwartz.
The aforementioned $210 million state-funded award was requested by the Michigan Economic Development Corporation's (MEDC's) strategic fund board to come out of the Strategic Outreach and Attraction Reserve (SOAR) Fund.
Quentin Messer Jr. – the MEDC's executive director – told members of the media that the $210 million would be issued as a Critical Industry Program grant, which is performance-based, within the SOAR Fund.
"Manufacturing these new batteries in America brings us closer to battery independence. Right now, many automakers import most of their batteries from abroad. This is a slow, expensive process that makes us vulnerable to supply chain disruptions," Farley said on stage. "And that's why we're working with CATL."
Farley described CATL, the Chinese battery manufacturer and technology company, as the experts in lithium-ion battery technology, and will help Ford with getting up to speed to build the batteries for EVs themselves.
Earlier this year, Gov. Glenn Youngkin of Virginia told his state's own economic development partnership group to pull Virginia out of the competition to lure a $3.5 billion investment from Ford. He additionally called on Virginia lawmakers to produce legislation prohibiting "dangerous foreign entities tied to the Chinese Communist Party from purchasing Virginia's farmland."
When asked how Michigan residents might feel about a Chinese company being involved in Ford's large investment, Messer said "let's just focus on the facts."
"The facts are, one: any incentive dollar will be going to a (100%) wholly owned Ford subsidiary, not a dime will go to a Chinese entity. Second, and critically important, is (that) no money will go to anyone until performance milestones are met," Messer said. "There are only two companies in the world that produce this type of technology, the lithium ion phosphate technology, both of them happen to be Chinese."
Messer said by this licensing of technology that Ford is doing, "we are bringing this capability to the U.S." and allowing the country to move more rapidly up the learning curve to soon develop its own battery technology.
Ultimately, Whitmer said with Ford's goal of delivering 600,000 electric vehicles by the end of 2023, and 2 million by the end of late 2026, the new Marshall facility will be part of the company continuing to shape the next century. Farley added that when the plant comes on the line in 2026 as well, "we will deliver one of the lowest-cost batteries produced in the United States."
Whitmer said all of this work is important because it makes a real difference to people.
"Ford's investment in Marshall will be an absolute game changer. (It'll) help create generational opportunities for West Michigan families, schools, small businesses and the surrounding community," Whitmer said. "Over the past few decades, too many good-paying jobs were shipped overseas, now we're bringing them back. We're competing for more projects of every size to lead the future of mobility and electrification."
Marshall in Calhoun County is home to 7,088 people. The Ford investment aims to initially generate 2,500 new and highly skilled manufacturing jobs. The automobile manufacturer will also back a 245-acre conservation easement on the soon-to-be site's southern edge, aiming to preserve land along the Kalamazoo River for "generations to come."
"The Ford fund will also be contributing resources to help the community explore how to best enjoy this beautiful land," Ford said at the beginning of today's event. "At this plant, the team will build a new kind of factory. These batteries will be more affordable, incredibly durable and they'll charge faster."
