Ford has been granted almost $630 million in incentives to help establish an electric vehicle (EV) battery plant in Marshall, Michigan. The $3.5 billion project is expected to create 2,500 jobs and license battery technology from China’s Contemporary Amperex Technology (CATL).
The incentive package was passed earlier this month and includes a $330 million appropriation for road and infrastructure improvements to prepare the site for the massive factory. Additionally, the incentives include a $299.7 million appropriation for land acquisition, demolition, tree clearing, and other activities at the site.
Economic development officials in the state have previously approved a $210 million grant for Ford, allocated $36 million to the Marshall Area Economic Development Alliance to get the site ready, and issued a 15-year tax abatement valued at $772 million. This means total incentives for the site sit at about $1.6 billion.
Michigan Governor Gretchen Whitmer described the project as a way to “create thousands of good-paying jobs and revitalizing every region of our state.” However, not everyone is happy with the incentives. State Republican Ann Bollin of the Brighton Township says the incentives represent more than $640,000 per job that will be created.
Meanwhile, the Chinese government has expressed reservations about the factory. It is wary of CATL’s industry-leading battery technology potentially being given to or accessed by Ford, leading Chinese leaders to ask for extra scrutiny of the deal. Ford says that it will independently own the factory and that CATL’s involvement will be limited to being a “contractual service provider and licensor of technology.”
See also: General Motors invest More Than $3 Billion for Electric-Vehicle factory in Michigan
The EV battery plant is seen as a crucial investment for Ford as it seeks to expand its electric vehicle offerings and compete with rivals such as Tesla. The incentives provided by the state of Michigan will go a long way in helping Ford achieve its goals and establish itself as a major player in the EV market.
