As states continue to battle it out for EV and battery production plants in the wake of the Inflation Reduction Act, Michigan has awarded incentives to two new battery projects: Our Next Energy (ONE) and Chinese battery maker Gotion.
ONE is a Michigan-born energy storage company founded by Apple Inc. veteran, Mujeeb Ijaz. The company is described as being “focused on battery technologies that will accelerate the adoption of EVs and expand energy storage solutions.” Michigan Governor Gretchen Whitmer says ONE will invest $1.6 billion (all figures in US dollars) to build its first-ever battery manufacturing campus in Van Buren Township, with the help of a $200 million grant from the state. This facility, which will be named ONE Circle, stands to become one of the few US-owned manufacturers of LFP and anode-free cells.
“Our Next Energy’s $1.6 billion investment creating 2,112 jobs in Van Buren Township will build on our economic momentum and secure the future of mobility and electrification right here in Michigan,” said Governor Gretchen Whitmer in an official press release this week. “This innovative, Michigan-made company is on the cutting-edge of battery technology, and the work they’re doing will increase the range of electric vehicles to over 600 miles on a single charge. With this new gigafactory, we will continue bringing the supply chain of electric vehicles, chips, and batteries home to Michigan and the USA while creating a sustainable, clean energy economy.” As of right now, the factory is expected to be operational in 2024, and reach full capacity by 2027.
Building on this momentum, Michigan has also awarded a $175 million in grants to Chinese battery maker Gotion High-Tech Co, in addition to a zoning designation with an estimated value of $540 million. Although the project has not been explicitly confirmed yet, Gotion has reportedly proposed investing $2.4 billion in a plant in Big Rapids, Michigan, to build battery anodes and cathodes. If finalized, the project could generate as many as 2,350 local jobs.
“The facility will serve our finished goods manufacturing in North America and possibly have enough capacity to sell these two critical components to other North-America based battery manufacturers,” Chuck Thelen, the company’s vice president of North America operations, said in an emailed statement to Bloomberg.
Notably, ONE’s batteries should qualify for the full 7.5 per cent tax credit on consumer EVs and production tax credits as outlined by the Inflation Reduction Act.
