A battery project will get nearly $12 million in incentives approved by the Strategic Fund board.
On Tuesday, the state approved corporate incentives totaling almost $12 million for a proposed battery assembly factory located near Detroit.
That equates to a $9 million grant from the Michigan Business Development Program, a roughly $1.3 million 15-year State Essential Services Assessment, and a roughly $2.4 million tax relief for brownfield redevelopment.
Fortescue, an Australian firm, intends to establish USA Fortescue Piquette, LLC, one of its subsidiaries, as a manufacturing center at the location of a historic facility on Piquette Avenue in Detroit.
Judith Judson, CEO of Fortescue WAE, worked on the state incentive proposal.
According to Judson, Fortescue looked at around a hundred locations for the project before deciding on Detroit with the assistance of the suggested incentive package.
This choice was made in the end due to the enormous support that both the state and the city provided. Judson said as much at the Michigan Strategic Fund board meeting on Tuesday. “So just many things came together.”
The Michigan Strategic Fund board approved the project incentives.
Documents provided as briefing documents to the MSF board indicated that a $210 million investment and 560 new employment may result from the Fortescue venture.
Prior to the board’s decision on the issue, Judson addressed a question about her local partners that the business intended to collaborate with.
One of the main things that drew us to this location was the robust supply network in the region. Therefore, we are doing a lot of outreach now that we are considering establishing manufacturing here, Judson said.
According to Judson, the first assembly line may be put into service in 2025.
The location may see construction as early as this spring.
In the meanwhile, a $1.5 million business development grant for an electric car charging startup was approved at the MSF Board meeting on Tuesday.
The German-based corporation EcoG’s subsidiary intends to locate its North American headquarters in a leased building in Detroit’s Corktown district.
“We think this is the best opportunity and ecosystem for our future developments in the North American market,” the company said. Thus, we have decided to locate our North American headquarters in Corktown and establish a facility in Michigan,” EcoG CEO Jörg Heuer said the board on Tuesday.
According to Heuer, the state outperformed rival locations in Cleveland, Ohio, and Atlanta, Georgia.
According to briefing papers, the project may result in up to $14.4 million in capital expenditure and up to 45 well-paying employment.
These incentive payments coincide with opposition and delays from the local community for other, bigger projects, such as battery facilities in Marshall and Big Rapids.
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