Virginia Gov. Glenn Youngkin passed on the opportunity to have Ford Motor Co. build a new battery plant, complete with some 2,500 new jobs, in his state.
Michigan Gov. Gretchen Whitmer was in no mood to pass up such an opportunity, a position she made clear Monday when Ford officials announced a $3.5 billion investment to construct and equip a electric vehicle battery manufacturing facility in Marshall.
Ford officially announced the new 2.5 million-square-foot facility in a press conference Monday featuring Whitmer, Ford executives Bill Ford Jr., executive chair of the board, and CEO Jim Farley.
The project is expected to create 2,500 good-paying jobs Whitmer said will add to the region’s tax base and help further the company’s electric vehicle future in the state.
The announcement continues the state’s momentum in securing electric vehicle and battery manufacturing facilities in Michigan as the automotive industry transitions toward an electric future, Whitmer said.
“Ford’s $3.5 billion investment creating 2,500 good-paying jobs in Marshall building electric vehicle batteries will build Michigan’s economic momentum,” she said. “Today’s generational investment by an iconic American company will uplift local families, small businesses, and the entire community and help our state continue leading the future of mobility and electrification.
“Let’s continue bringing the supply chain of electric vehicles, chips, and batteries home while creating thousands of good-paying jobs and revitalizing every region of our state,” she added. “Since I took office, we’ve secured over 30,000 auto jobs and landed multiple electric vehicle and chip-making factories. We’re on the move, so let’s keep our foot on the accelerator.”
The investment announced Monday will support Ford’s goal of producing two million electric vehicles annually by 2026. The new facility in Marshall will be used to manufacture batteries that will go into several of the company’s future electric vehicles. The project is expected to result in the creation of 2,500 new jobs.
To support Ford, the Michigan Strategic Fund approved:
- Critical Industry Program (CIP)through Strategic Outreach and Attraction Reserve Fund (SOAR) – $210 million
- MSF Designated Renaissance Zone – $772 million
- Jobs for Michigan Investment Fund Loan – $36 million
Ford conducted a highly competitive, multi-state, multi-country site selection process to determine where to locate the new battery manufacturing facility and investment before choosing Michigan for the project.
“We are committed to leading the electric vehicle revolution in America, and that means investing in the technology and jobs that will keep us on the cutting edge of this global transformation in our industry,” Ford Jr., said. “I am also proud that we chose our home state of Michigan for this critical battery production hub.”
Farley pointed out Ford’s EV lineup has “generated huge demand.”
“To get as many Ford EVs to customers as possible, we’re the first automaker to commit to build both NCM and LFP batteries in the United States,” Farley said. “We’re delivering on our commitments as we scale LFP and NCM batteries and thousands, and soon millions, of customers will begin to reap the benefits of Ford EVs with cutting-edge, durable battery technologies that are growing more affordable over time.”
Ford’s decision to expand in Michigan will have a far-reaching impact on the entire state, with the influx of jobs resulting in spinoff investments and local redevelopment opportunities. Unlike traditional power train systems, EV battery packs must be produced in proximity to vehicle assembly.
As the state grows its battery production capacity through investments like today’s announcement, the better positioned Michigan will be to win future OEM vehicle assembly plants and related suppliers including potential chipmakers.
Additionally, it is anticipated the influx of jobs will result in spin-off investments and redevelopment opportunities, the governor’s office said in a release Monday. More than $29.7 billion in new personal income is expected to be generated by the direct, indirect, and induced jobs that this opportunity will create over 20 years. This personal income will be utilized to support the many small businesses in the community and create opportunities for families to live and grow in the community for generations to come.
In addition, the project has an employment multiplier of 4.38, which means that an additional 4.38 jobs in Michigan’s economy are anticipated to be created for every new direct job, due to the extensive supply chain that exists in Michigan.
These new jobs are generating new income, much of which is spent at local small businesses throughout the community and the state.
“This project creates new opportunities for businesses of all sizes across the state to ensure that Michigan retains its strong supplier network and provides a platform for further investment throughout Michigan,” said Quentin Messer, CEO of the Michigan Economic Development Corporation and the chair of the Michigan Strategic Fund. “Ford’s decision underscores the strength of our state’s automotive sector and the bipartisan, Team Michigan commitment to winning the future of mobility and battery manufacturing here in Michigan.”
