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Michigan Board Approves $400 Million for EV Battery Advancement

LANSING, Michigan (AP) — Michigan’s Economic Development Commission said Wednesday that it plans to spend more than $400 million on two battery plants, estimated to cost $4 billion and add 4,500 jobs to the state. Approved state incentives.

Incentive packages pending state legislative approval include: Withdraw from funds established within 1 year based in Dearborn Ford Motor Company to start manufacturing electric vehicles Automobile battery factories in other states.

“We are in a global race to ensure that Michigan remains on the cutting edge of auto manufacturing. Investments like the one we announced today are game changers,” said Michigan’s governor. Gretchen Whitmer said in an interview with the AP on Wednesday.

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Our Next Energy, a Michigan energy storage company, will allocate $236 million to a project worth up to $1.6 billion in the Detroit suburb of Van Buren Township. $175 million will be allocated as an incentive to his $2.4 billion factory planned by Chinese manufacturer Gotion for Big Rapids in northern Michigan. The factory will produce components used in electric vehicle batteries.

President Joe Biden introduced administration efforts to promote electric vehicles Appearance at last month’s Detroit Auto Show He said Michigan is “building the future of electric vehicles.”

under His Inflation Reduction LawFor an electric vehicle to qualify for a federal tax credit of up to $7,500, the battery must be manufactured in North America.

The board of directors of the Michigan Economic Development Corporation passed the incentives on Wednesday, but congressional approval must go through the House and Senate Appropriations Committees. The timeline for the commission’s approval is unknown, according to the spokesperson.

According to the company’s proposal, the planned $2.4 billion Gotion project on Big Rapids’ 523-acre site will create 2,350 jobs with an average hourly wage of $29.42. The factory will produce cathodes and anodes, two of his key components in electric vehicle batteries. The board also approved the 30-year Renaissance Zone, which was approved by county officials last week, saving the company an estimated $540 million.

The company’s Next Energy said the planned 59,000-square-foot (18,000-square-meter) factory in Van Buren Township will cost $1.6 billion and will manufacture “battery packs for commercial and consumer electric vehicles.” will create new jobs for

Quentin L. Messer Jr., CEO of the National Economic Development Corporation, said the $400 million incentive is performance-based in case the target is not met.

In an interview with The Associated Press, Messer said, “If a company performs well and then performs poorly, and its defaults are not subsequently remedied, the state taxes will be returned to the Michigan taxpayer.”

Strategic Outreach and Attraction Reserve Passed Republican-Dominated Congress Last year on a budget of $1.5 billion.

“Michigan has to compete for tomorrow’s jobs and the only way to do that is to be in the game,” Curtis Hartel, the Democratic head of the Senate Appropriations Committee, told the Associated Press last week. rice field.

This article has been corrected to indicate that Our Next Energy project will take place in Van Buren township instead of Novi.

Joey Cappelletti is a member of the Associated Press/Reports for America Statehouse News Initiative. Reporting to America is a non-profit national service program that places journalists in local newsrooms to cover hidden issues.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

https://theindependent.com/lifestyles/technology/michigan-board-approves-400-million-to-advance-ev-batteries/article_e9a62050-5c80-594e-8d2b-3475e3f34d4c.html Michigan Board Approves $400 Million for EV Battery Advancement

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