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Monday, February 13, 2023
ROMULUS, Mich. – Today, Governor Gretchen Whitmer joined Ford’s Executive Chair Bill Ford and CEO Jim Farley at Ford Ion Park to announce an investment by Ford of more than $3.5 billion to construct and equip a new 2.5 million square foot electric vehicle battery manufacturing facility in Marshall. The project is expected to create 2,500 good-paying jobs that will add to the region’s tax base and help further the company’s electric vehicle future in the state. This announcement continues the state’s momentum in securing electric vehicle and battery manufacturing facilities in Michigan as the automotive industry transitions toward an electric future.
“Ford’s $3.5 billion investment creating 2,500 good-paying jobs in Marshall building electric vehicle batteries will build Michigan’s economic momentum,” said Governor Whitmer. “Today’s generational investment by an iconic American company will uplift local families, small businesses, and the entire community and help our state continue leading the future of mobility and electrification. Let’s continue bringing the supply chain of electric vehicles, chips, and batteries home while creating thousands of good-paying jobs and revitalizing every region of our state. Since I took office, we’ve secured over 30,000 auto jobs and landed multiple electric vehicle and chip-making factories. We’re on the move, so let’s keep our foot on the accelerator.”
The investment announced today will support Ford’s goal of producing two million electric vehicles annually by 2026. The new facility in Marshall will be used to manufacture batteries that will go into several of the company's future electric vehicles. The project is expected to result in the creation of 2,500 new jobs
Ford conducted a highly competitive, multi-state, multi-country site selection process to determine where to locate the new battery manufacturing facility and investment before choosing Michigan for the project.
“We are committed to leading the electric vehicle revolution in America, and that means investing in the technology and jobs that will keep us on the cutting edge of this global transformation in our industry,” said Bill Ford, Ford’s executive chair. “I am also proud that we chose our home state of Michigan for this critical battery production hub.”
“Ford’s electric vehicle lineup has generated huge demand. To get as many Ford EVs to customers as possible, we’re the first automaker to commit to build both NCM and LFP batteries in the United States,” said Jim Farley, Ford president and CEO. “We’re delivering on our commitments as we scale LFP and NCM batteries and thousands, and soon millions, of customers will begin to reap the benefits of Ford EVs with cutting-edge, durable battery technologies that are growing more affordable over time.”
Ford’s decision to expand in Michigan will have a far-reaching impact on the entire state, with the influx of jobs resulting in spinoff investments and local redevelopment opportunities. Unlike traditional power train systems, EV battery packs must be produced in proximity to vehicle assembly. As the state grows its battery production capacity through investments like today’s announcement, the better positioned Michigan will be to win future OEM vehicle assembly plants and related suppliers including potential chipmakers.
Additionally, it is anticipated the influx of jobs will result in spin-off investments and redevelopment opportunities. More than $29.7 billion in new personal income is expected to be generated by the direct, indirect, and induced jobs that this opportunity will create over 20 years. This personal income will be utilized to support the many small businesses in the community and create opportunities for families to live and grow in the community for generations to come.
In addition, the project has an employment multiplier of 4.38, which means that an additional 3.38 jobs in Michigan’s economy are anticipated to be created for every new direct job, due to the extensive supply chain that exists in Michigan. These new jobs are generating new income, much of which is spent at local small businesses throughout the community and the state.
“This project creates new opportunities for businesses of all sizes across the state to ensure that Michigan retains its strong supplier network and provides a platform for further investment throughout Michigan. Ford’s decision underscores the strength of our state’s automotive sector and the bipartisan, Team Michigan commitment to winning the future of mobility and battery manufacturing here in Michigan,” said MEDC CEO and Michigan Strategic Fund President and Chair Quentin Messer Jr. “We appreciate Ford’s continued vote of confidence and their partnership on this economic win for our friends and neighbors, and are encouraged by the positive economic impact it will have statewide for decades to come.”
To support today’s transformational investments, the Michigan Strategic Fund today approved:
James Durian, CEO of the Marshall Area Economic Development Alliance (MAEDA), celebrated the governor’s announcement today as an important step toward the development of the Marshall Megasite that will make a positive, lasting impact on the region for years to come.
“This innovative project will be a magnet for thousands of jobs and billions of dollars of new capital investment into our region which will help to improve the quality of life for our entire community,” Durian said. “This project will create an entirely new talent pipeline, preventing brain drain and helping to provide critical diversity to the regional economy.”
The Marshall site, chosen for the project, represents a unique economic development opportunity to create thousands of jobs and spark billions in investment for the community, the region and beyond. The site and the new personal incomes generated will house a new economic engine for the Marshall community and the greater southwest Michigan region that will pump millions of dollars into local small businesses like restaurants, grocery stores, hardware stores, shops and other small businesses. It will also be a magnet for billions of dollars of new capital investment into the region, funding for road improvements and infrastructure projects, and attracting new housing development opportunities which all will help improve the overall quality of life for those living in the region.
Consumers Energy is working closely with companies, the Michigan Economic Development Corporation and local economic development organizations to compete for these transformational investments. Energy – primarily clean, affordable and reliable electricity – is a top consideration for companies seeking a new site. A robust site inventory and new-construction and energy efficiency incentives and an available workforce also play a key role in decision making. Consumers’ economic development rate, approved by the Michigan Public Service Commission, will help grow Michigan’s economy by attracting and retaining major manufacturing companies.
“Today's announcement represents an important investment in Michigan and sends the message that our state has a strong, collaborative strategy to attract jobs,” said Garrick Rochow, Consumers Energy's president and CEO. “Consumers Energy and our partners with the state are using clean energy not only to protect the planet, but to strengthen our economic development toolkit.”
Today’s announcement follows Ford’s announcement in June 2022 that it will invest more than $2 billion across five of the company’s plants in Southeast Michigan, including a new packaging facility in Monroe Charter Township. As the company continues to electrify its existing fleet, the remaining investment will help ensure those vehicles will also be built in Michigan by providing a strong base in Michigan for future decisions around converting vehicles and plants to electric. The project is expected to create more than 3,200 good-paying, UAW jobs and help further the company’s electric vehicle future in the state while also securing the company’s existing internal combustion engine vehicle operations in Michigan.
Earlier in 2022, Ford announced that it was forming a new partnership to activate the Michigan Central Innovation District in an effort to attract and retain highly skilled talent and high-growth companies while supporting the development of neighboring neighborhoods. This district, anchored by the iconic Michigan Central Train Station, will serve as a globally recognized hub for talent, mobility innovation, entrepreneurship, sustainability, affordable housing, small business opportunities and community engagement.
Since 2016, Ford has announced nearly $13.5 billion in investment in Michigan, largely around electric and autonomous vehicle manufacturing, supporting nearly 12,500 new and retained jobs for Michigan’s manufacturing workforce.
A recent report from CNBC named Michigan as one of three states poised to “dominate” electric vehicle battery manufacturing in the United States by 2030. Michigan is leading the charge to position the U.S. as a global electric vehicle competitor through this increased manufacturing capacity. Last year, the state attracted more than $14 billion in electric vehicle and battery investments while developing programs to train and employ the next generation of talent in the electric vehicle and mobility sector.
Ford’s announcement today builds on other recent transformational electric vehicle and battery investments in Michigan including:
Signed into law by Governor Whitmer in December 2021, the Critical Industry Program was created to ensure Michigan could effectively compete for billions of dollars in investment and attract tens of thousands of jobs to bolster the state’s economy.
Quotes from legislators and local officials
“Jobs matter,” said Speaker Joe Tate. “A good paying job has the ability to change a person’s life and this investment by Ford will surely change the lives of thousands of Michiganders. The ripples of economic development are felt across generations and it makes sense that Michigan should be the site where Ford locates it latest manufacturing facility. Generations of Michiganders have been at the forefront of advancements in the automotive industry and our workers are second to none when it comes to putting and keeping the world on wheels.”
“We know that increased EV adoption will be critical in solving our climate crisis, and with today's announcement, the great news is that more and more electric car parts will be built right here in our state," said State Senator Darrin Camilleri (D-Trenton). “The decisions we make now will have a profound impact on the durability of Michigan’s economy for decades to come, and I'm proud of the work that has been done to attract and grow the EV supply chain in our state while creating thousands of good Michigan jobs."
"This project is going to create new opportunities for the Marshall area and a region around the 69/94 corridor,” said State Representative Sara Lightner (R-Springport). The new Ford battery plant and the 2500 new jobs it creates will have ripple effects felt far beyond the site on which it is being built. Investments like these attract new families to the area, draw new customers to local restaurants and shops, and boost business for smaller manufacturers in the region. I look forward to discussing Ford’s commitment to Michigan even further, as it relates to the full base of taxpayers moving forward.”
Caryn Drenth, a Marshall resident and the owner of Living MI and Handle & Hinge in downtown Marshall, is excited to see the project move forward.
“This exciting announcement by Ford and Governor Whitmer will help replenish the thousands of jobs lost to our community in recent years and pump millions into local small businesses,” Drenth said.
Mark Behnke, the mayor of Battle Creek, is excited to see the region help produce cutting-edge technology that will mean long-term jobs for thousands.
“This project is a once-in-a-generation opportunity that will continue to benefit our area for decades,” Behnke said. “The new jobs will mean millions of dollars get infused into the local economy for our local small businesses long into the future.”
Bud Dunn, vice president at Atlas Sales, Inc., in Battle Creek said he’s excited about the opportunity the Marshall Megasite provides local small businesses across the region, including restaurants, grocery stores, hardware stores, shops and others.
“As a young business owner, I am always eager to see opportunities for young people to find jobs or create new businesses here in southwest Michigan,” Dunn said. “As a local family-owned beverage distributor, we’ve seen the difficulties faced over the past few years by mom-and-pop restaurants and neighborhood taverns. The megasite development will mean more people spending more money in the area, helping those businesses that need it.”
Dr. Paul Watson II, president of Kellogg Community College, said the college is excited about the opportunity to partner with a manufacturer entering the region.
“Kellogg Community College is ready to provide workforce-specific training, technical expertise and customizable academic degree pathways that will allow our young people to thrive in rewarding jobs that are in their own community,” he said.
About Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.
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