Mississippi Legislature passes $482 million incentive package for EV battery plant

Grant McLaughlin, Mississippi Clarion Ledger
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Despite several legislator’s concerns, lawmakers nearly unanimously passed three bills Thursday outlining a $482 million incentive package for three main companies to build a $1.9 billion electric vehicle battery plant in Marshall County.

Paccar, an engine manufacturing company with a plant in Columbus (Mississippi), Accelera by Cummins Inc., an Indiana-based engine company and Daimler Truck, based out of Oregon, entered into a joint venture last year to build a $1.9 billion electric vehicle battery plant on 500 acres in the Chickasaw Trails Industrial Park within Marshall County. The deal also included a minority partner, EVE Energy Co., Ltd. a Chinese lithium battery producer.

Gov. Tate Reeves said in a speech Thursday afternoon construction is slated to begin later this year. Bill Cork, executive director for Mississippi Development Authority said the company expects to open the plant sometime in 2027.

Mississippi Republican Gov. Tate Reeves, center, stands with House Speaker Jason White, R-West, left, and Republican Lt. Gov. Delbert Hosemann, right, as well as the legislators behind him, as he praises the passing of a state incentives package for a Mississippi factory that will manufacture batteries for electric vehicles — a project that promises 2,000 jobs, following a special session of the Mississippi Legislature, Thursday, Jan. 18, 2024, at the Mississippi Capitol in Jackson.

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“I can’t imagine a better way to kick off the new year than with the announcement of the largest payroll commitment and the second largest capital investment in Mississippi’s history,” Reeves said. “This historic investment by these industry-leading companies will enshrine our state at the forefront of the automotive industry for years to come and create 2,000 good-paying jobs in the process. Today’s announcement further demonstrates to the world that Mississippi is a top destination for business.”

Once open, the plant will hire 2,000 employees making an average annual salary of about $66,000 per year.Together, the three bills established the project, a bond account with the Mississippi Treasury Department and gave responsibility to the Mississippi Development Authority to disburse funds and work on workforce development with the companies. They also established $117 million in appropriations from the state’s general fund, which subtracted the total bonds issued to just $365 million.

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The project also received sales and use tax emptions during the construction period for equipment, materials and energy sold for the project, a 10-year corporate income tax exemptions and fee-in-lieu agreements on franchise taxes, as well as property taxes from Marshall County.

Rep. John Faulkner, D, who serves Marshall County, told the Clarion Ledger the project was well worth it, and he was happy to see it pass through.

“This is very exciting time not just for Marshall County, but the entire state of Mississippi,” he said. “Whenever you can have an economic project of this magnitude that can create some 2,000 jobs, paying wages of $66,000, that's a major game changer. It's an amazing amount of money. I think one of the largest I've seen since I've been in the legislature, but that goes to show how serious Mississippi is about  being open for business.”

The bills passed Thursday did, however, include claw backs, which could cost the companies $238 million if the project fails, or if the companies fail to provide workforce numbers as agreed with the state, Cork said.

After both the House and Senate passed the incentive package, a spokesperson with Reeve’s office said he would not sign the bills until sometime next week.

Democrats upset over little time, little consideration to amend bill package

Mississippi state Sen. David Jordan, D-Greenwood, asks a question concerning the funding incentives for a proposed factory that would make electric vehicle batteries during a special session of the Mississippi Legislature, Thursday, Jan. 18, 2024, at the Mississippi Capitol in Jackson.
Mississippi state Sen. David Jordan, D-Greenwood, asks a question concerning the funding incentives for a proposed factory that would make electric vehicle batteries during a special session of the Mississippi Legislature, Thursday, Jan. 18, 2024, at the Mississippi Capitol in Jackson.

Over the course of Thursday's special session, Democratic members of the legislature attempted to add amendments and voice concerns over the speed in which the $482 million in incentives were passed, as well as the context of the bills.

Robert L. Johnson, D, representing Adams, Franklin and Jefferson Counties, moved for two amendments to be added to the bill, one requiring that 70% of the 2,000 employees at the new plant be state residents, and the other stating the company would need to invest a certain amount into the community it locates in.

Black Democratic legislators stand with Mississippi Rep. Robert Johnson of Natchez, left, while state Sen. Derrick Simmons of Greenville, calls on the leadership of both chambers and the governor to make a greater effort to develop an economic development package that benefits the residents of the Mississippi Delta, shortly after the state Legislature passed a state incentives package for a Mississippi factory that will manufacture batteries for electric vehicles — a project that promises 2,000 jobs, during the special session of the Mississippi Legislature, Thursday, Jan. 18, 2024, at the Mississippi Capitol in Jackson.

“I think it just makes sure that when we invest this kind of money, we're not watching people come across the Tennessee line to work and then go back home,” Johnson said.

House Ways and Means Committee Chair Trey Lamar, R, said those amendments were unnecessary and asked legislators to decline the amendment. Both amendments failed.

Mississippi House of Representatives Ways and Means Committee Chairman Rep. Trey Lamar, R-Senatobia, explains the funding incentives for a proposed factory that would make electric vehicle batteries and might eventually have a workforce of 2,000, during a special session of the Mississippi Legislature, Thursday, Jan. 18, 2024, at the Mississippi Capitol in Jackson.

Joined by members of the House's Black Caucus after the session, Johnson and Rep. Derrick T. Simmons, D, held a press conference addressing the overall hastiness of the session, a lack of attention paid to who will fill those new jobs, as well as the fact that Reeves called a special session during the already existing legislative schedule.

“In the middle of a 120-day session, we don’t need the governor becoming a legislator,” Johnson said.

Mississippi Republican Gov. Tate Reeves thanks lawmakers for passing a state incentives package for a Mississippi factory that will manufacture batteries for electric vehicles — a project that promises 2,000 jobs during a special session of the Mississippi Legislature, Thursday, Jan. 18, 2024, at the Mississippi Capitol in Jackson.
Mississippi Republican Gov. Tate Reeves thanks lawmakers for passing a state incentives package for a Mississippi factory that will manufacture batteries for electric vehicles — a project that promises 2,000 jobs during a special session of the Mississippi Legislature, Thursday, Jan. 18, 2024, at the Mississippi Capitol in Jackson.

Reeves later responded by stating the project will prove a benefit to the entire state, including the Delta, and would not only provide new jobs to people in Marshall County.

“I will remind you that in the 2023 election, I didn't win Marshall County, just FYI,” Reeves said. “In fact, Marshall County is a majority minority county, and what's going to happen in this particular facility, is you're going to see Republicans and Democrats. You're going to see folks from Marshall County and folks from the entire region benefit from jobs that are paying $66,000 a year. That's about 165% of the county average salary, and folks don't have to check what political party they're a member of when they apply for a job.”

This article originally appeared on Mississippi Clarion Ledger: Legislature passes $482 M incentive package for new EV battery plant