Whitmer celebrates new Ford battery plant in Michigan backed by state support valued over $1B

ROMULUS − Democratic Gov. Gretchen Whitmer celebrated Monday Ford Motor Co.'s decision to create a new electric vehicle battery plant in Marshall expected to create 2,500 jobs after Michigan economic development officials approved an investment with an estimated value over $1 billion to land the facility.

"It's thrilling, it's thrilling," Whitmer told reporters following a Ford event at the Ford Ion Park. "I can't imagine if this announcement was happening in another state how we’d all be feeling right now."

While Ford considered locations around the world for the plant, one potential competitor for the deal took itself out of the running. Virginia GOP Gov. Glenn Youngkin rejected the potential deal, suggesting that it could pose a security threat because of the involvement of a Chinese company, Contemporary Amperex Technology Co. Ltd (CATL).

Ford president and CEO Jim Farley said the company was teaming up with CATL — the world's largest battery maker — to quickly scale up its electric vehicle production. Ford executive chairman Bill Ford said that the company will "help us get up to speed so that we can build these batteries ourselves."

State investments in the project include a $210 million grant from the state's Strategic Outreach and Attractive Reserve fund to Ford. The SOAR fund has its origins in a major blow to Michigan's efforts to lead the transition to electric vehicles two years ago when Ford passed over Michigan to build new electric vehicle and battery plants in Kentucky and Tennessee. The fund has since doled out hundreds of millions in taxpayer-funded economic incentives to lure companies that vow to create jobs in Michigan.

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Economic development officials also approved a 15-year tax abatement for Ford with an estimated value of $772 million along with a $36 million loan for the Marshall Area Economic Development Alliance to be repaid using SOAR funds.

CATL is not a government-owned enterprise, but some GOP lawmakers have expressed concerns about the use of taxpayer-funded incentives for the Marshall battery plant because of Ford's collaboration with a Chinese-owned company.

State Rep. Andrew Fink, R-Hillsdale, raised such concerns, questioning the company's independence from the Chinese government. "The Chinese government is not an entity that Americans can trust," he said. "It's categorically different than other types of potential partnerships."

Quentin Messer Jr., who heads the state's economic development agency, rejected the criticism.

"Any incentive dollar will be going to a 100% wholly-owned Ford subsidiary. Not a dime will go to a Chinese entity," he said. "By this licensing of technology that Ford is doing, we are bringing this capability to the U.S."

In addition to her efforts to land investments in Michigan's electric vehicle industry, Whitmer also wants to incentivize Michigan drivers to go electric.

In her state budget recommendations she recently unveiled for the next fiscal year, Whitmer proposed a temporary sales tax cut for electric vehicle purchases. Under the proposal, those buying electric vehicles would see a tax cut on the first $40,000 of the purchase, saving up to $2,400 in taxes, according to the governor’s budget presentation.

Clara Hendrickson fact-checks Michigan issues and politics as a corps member with Report for America, an initiative of The GroundTruth Project. Make a tax-deductible contribution to support her work at bit.ly/freepRFA. Contact her at chendrickson@freepress.com or 313-296-5743. Follow her on Twitter @clarajanehen.

This article originally appeared on Detroit Free Press: Whitmer celebrates Ford battery plant in Michigan