September 20, 2024
FOR IMMEDIATE RELEASE
September 20, 2024
Contact: MichiganInfrastructure@michigan.gov
Gov. Whitmer’s Battery Challenge Secures Federal Infrastructure Investment in Four Michigan Companies that will Create or Retain Thousands of Jobs
$355 Million investment will advance Michigan’s efforts to lead the nation in clean energy investments, bring supply chains home, create 1,939 new jobs and retain 425 existing jobs
LANSING, Mich.—Governor Whitmer today announced the Department of Energy will award $355 million to help four companies expand the manufacturing of batteries for electric vehicles (EV) and energy storage in Michigan and create or retain up to 929 permanent positions and support 1,435 construction jobs. This investment, made possible by the Biden-Harris administration’s Bipartisan Infrastructure Law (BIL), is the largest Michigan has received from any competitive BIL program. It will spur battery and advanced manufacturing projects, strengthen Michigan’s energy independence, create good-paying middle-class jobs, and help the state achieve carbon neutrality by 2050.
“Michigan is leading the future of clean energy and competing to bring manufacturing jobs and supply chains back home,” said Governor Whitmer. “With this historic funding from the Biden-Harris administration and our congressional delegation, we are expanding our production of batteries for electric vehicles and clean energy storage, solidifying our position as a leader in advanced manufacturing and clean energy. We will continue to compete for and win federal funding to build on our momentum, add to the 40,000 auto jobs we have already secured since I took office, and keep leading the future of advanced manufacturing. Let’s get it done.”
“The Michigan ethos is embedded in America’s industrial fabric, and the Biden-Harris administration is deepening that proud manufacturing legacy,” said U.S. Secretary of Energy Jennifer M. Granholm. "Thanks to the Investing in America agenda, Michigan is poised to see over $1 billion more in public-private investment creating hundreds of new jobs for workers across the state who are essential to ensuring our national energy security.”
“I’m proud to have helped pass new laws to support auto workers and create good-paying, union jobs in mid-Michigan,” said U.S. Congressman Dan Kildee. “These investments are helping to bring manufacturing jobs back to Michigan and ensure the future of electric vehicles are produced in America, not China.”
“Our state is driving the next generation of auto innovation and technology, and there’s no better place for this plant than here in Southeast Michigan. To keep America a global leader in EVs and manufacturing, we must ensure electric vehicles, their batteries, all their components, and their infrastructure are built here at home,” said U.S. Congresswoman Debbie Dingell. “This investment will strengthen our domestic battery supply chain, create good paying union jobs, support Michigan’s auto leadership, and advance our transition to a clean-energy future.”
In February, Governor Whitmer and the Michigan Infrastructure Office (MIO) announced the Battery and Advanced Manufacturing Challenge (The Challenge), a $125 million strategic investment from the Make it in Michigan Competitiveness Fund (Competitiveness Fund) that made available matching dollars for battery manufacturing and advanced manufacturing companies that successfully bring federally-funded projects in the battery manufacturing, materials processing, and advanced manufacturing sectors to Michigan. Including the investments announced today, the Competitiveness Fund has invested $140.5 million, leveraging $598 million in federal funds, a return on investment of more than 4:1.
Michigan companies receiving DOE and Competitiveness Fund dollars are described below. More information about each project can be found here.
“These investments demonstrate that Michigan is the beating heart of the battery belt. Investing in manufacturing of batteries means that our auto industry and our energy sector can depend on domestic production sources, reducing our reliance on foreign sources and creating good-paying jobs right here in Michigan,” said Zachary Kolodin, Michigan’s chief infrastructure officer and director of the Michigan Infrastructure Office. “The Competitiveness Fund has propelled Michigan to the forefront of clean energy manufacturing and demonstrated that we can build big things while delivering on good jobs. The Biden-Harris administration’s Investing in America programs have kicked off a manufacturing boom here in America, and Michigan has taken advantage, creating good-paying jobs in our communities that build the future of clean and abundant energy.”
Cabot Corporation will receive $50 million from DOE to build the United State’s first integrated carbon nanotube production and conductive additive dispersion manufacturing facility for advanced EV and energy storage system batteries. The project will create 85 permanent positions and 250 construction jobs while working with the North American Building Trades Union (NABTU), the Michigan Building and Construction Trades Council, the International Chemical Workers Union Council (ICWUC), and local trade schools to support and develop a skilled domestic workforce.
“To fulfill the promise of the Biden-Harris administration’s generational investments in infrastructure, advanced manufacturing, and climate, we are continuing to invest in workers,” said Acting Secretary of Labor Julie Su. “The Make it in Michigan Competitiveness Fund shows we don’t need to choose between good jobs and climate action when, in fact, we can achieve both. I applaud the state of Michigan for leading the way to ensure that these federal investments lead to good jobs in communities across this state.”
Governor Whitmer and the Competitiveness Fund challenged companies to support workers with fair pay, good benefits, and skill development and protect their union rights as part of the $125 million allotment. Applications were evaluated on a number of factors, including environmental impact, fair wages and benefits for workers, skill development, and protection of union rights. As part of the application process, Michigan companies made specific commitments to job quality, including the use of Project Labor Agreements (PLAs) for any construction project and entering into union neutrality agreements if requested. DOE requires applicants to have strong job quality and community benefits plans. The state’s push to require specific and meaningful commitments from employers likely contributed to the high success rate of Michigan-based applications.
“Because our elected leaders stand in strong partnership with organized labor, Michiganders have the guarantee that these investments will go towards creating good-paying jobs where every worker has the freedom to form and join a union without intimidation or retaliation,” said Michigan AFL-CIO President Ron Bieber. “We applaud the Biden-Harris and Whitmer administrations for continuing to put workers first by ensuring the cars, tech, and energy of the future are built right here in Michigan by union hands.”
The funding will build and expand commercial-scale facilities to extract and process lithium, graphite, and other battery materials. The companies submitted plans for engagement with local stakeholders, Tribal nations, environmental groups, and labor unions to make sure these projects create high-quality jobs, increase diversity, equity, inclusion, and accessibility, and contribute meaningfully to the Justice40 Initiative.
“As Michigan continues to lead the way in electric vehicle production and advanced manufacturing, we are also setting a new standard for job quality and worker protections,” said Susan Corbin, Director of the Michigan Department of Labor and Economic Opportunity. “This funding plays a crucial role in ensuring that businesses prioritize their workforce with strong job quality and community benefits plans. By supporting fair wages, robust benefits, and the protection of union rights, we are not only enhancing operations and worker well-being but also bolstering Michigan’s position as a leader in the clean energy economy.”
The Challenge and DOE funding is yet another step forward in Michigan’s efforts to lead the nation in clean energy investment. A new report from Climate Power shows Michigan continues to be a national leader in clean energy and electric vehicle manufacturing. The 2023 Clean Jobs America Report stated that clean energy businesses in Michigan added more than 5,400 workers in 2022 and now employ 123,983 Michiganders. According to the World Resource Institute, by the year 2040, the state could create 41,000 new jobs as it advances electric vehicle manufacturing and builds out of renewable energy, like solar and wind.
For more information, please visit the Make it in Michigan Competitiveness Fund website.
ABOUT THE MICHIGAN INFRASTRUCTURE OFFICE
The Michigan Infrastructure Office is responsible for organizing and executing Governor Whitmer’s vision for infrastructure, coordinating across state government, marshaling resources, and partnering with local officials, federal partners, and outside stakeholders to ensure resources sent to Michigan through BIL, also known as the Infrastructure Investment and Jobs Act (IIJA), are used efficiently and effectively.
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