LANSING, Mich. (Michigan News Source) – Michigan is among the top two states for receiving the most money committed or invested into producing electric vehicles (EVs) or their components over the last eight years, a recent study revealed.
Michigan had received $16.6 billion in projects and 16,300 jobs as a result of the Inflation Reduction Act (IRA) and state economic efforts according to the report by the Environmental Defense Fund (EDF). Over the past eight years, EDF’s report found that more than $120 billion had been invested in American EV manufacturing.
“Michigan is on the move, and we have an extraordinary opportunity right now to create thousands of good-paying manufacturing jobs and bring supply chains home,” Governor Whitmer said in a statement. “We are bringing home $16.6 billion of projects creating 16,300 jobs building batteries and electric vehicles. At the state level, we will continue powering this growth through our bipartisan economic development fund, rich manufacturing heritage, and skilled workers. Together, we will make Michigan the undisputed leader in mobility and electrification and build a brighter future. Let’s get it done.”
The EDF report also found that nearly 75% of the investments or announcements of investments have come in the last two years, nearly $88 billion, under the Biden administration. Roughly 11.4% of the 143,000 new jobs created and anticipated jobs in future projects can be found in Michigan.
Tennessee also received $16.6 billion in investments, and has roughly 18.3 thousand new jobs in the EV field. Georgia ranks third with 15.2 billion in total announced investments and anticipates a total of 19.4 thousand jobs.
Despite an announcement at the end of August, California’s plan to ban non “zero-emission vehicles” so that by 2035 100% of cars and light trucks in The Golden State would be without emissions, Michigan ranked above California, which was ranked 12th in the top 15 states to receive funding. The road-map to selling completely emissionless vehicles by 2035 begins with requiring automakers to begin selling 35% in 2026, increase to 68% in 2030, and reach 100% by 2035.
The report also projects that the U.S. EV manufacturing facilities will be capable of producing approximately 4.3 million new passenger vehicles each year in 2026, which is approximately 33% of all new vehicles sold in 2022, and anticipates that in the same year the battery manufacturing facilities in the states will be able to produce batteries sufficient to supply up to 11.2 million new passenger vehicles each year.
After some negotiations with Tennessee, Ford elected to move the destination of its next generation EV battery plant to Marshall, Michigan. The Blue Oval Battery Park plant, a $3.5 billion project, will open in 2026 and create 2,500 jobs initially according to Ford. There has been mixed support for the project from locals and legislators throughout the state who fear for the security of employees in the company as Ford plans to work with Contemporary Amperex Technology Co. Ltd (CATL) who will help with the new Lithium Phosphate battery technology.
At a House Appropriations Committee Meeting in late February, Ford Chief Government Operations Officer Ford Motor Company, Chris Smith assured committee members that the company would only serve as a technical service provider.
“The plant is going to be fully owned by a subsidiary of Ford Motor Company, so this will be an American investment made in Michigan,” Smith said, “They are going to be providing technical services for the project; the project is going to be owned, operated, and run by a subsidiary of the Ford Motor Company making batteries that are going to be installed in Ford vehicles.”