Gov. Whitmer announces $236.6M for EV battery plant in VBT

On Oct. 5, Governor Gretchen Whitmer joined the Michigan Economic Development Corporation in announcing $236.6 million in Michigan Strategic Fund incentives to support a new $1.6 billion electric vehicle battery gigafactory in Van Buren Township.
The Our Next Energy, Inc. plant, which is expected to bring 2,112 jobs, is planned for 42060 Ecorse Rd., west of Haggerty Road. It would have a capacity of 20 GWh, start with 20,000 units in 2024 and produce 200,000 units per year by 2027. It will serve as a new model for a battery plant anchored by a localized supply chain, said ONE CEO Mujeeb Ijaz.
ONE is expected to get the keys to its new 659,589-square-foot facility, named ONE Circle, in January from Ashley Capital, which built the spec development and entered into a multi-year lease with the startup.
The average hourly wage at the plant will be $35 in year six, above the local living wage target of $22.57, according to state officials. ONE plans to work with Focus:HOPE to develop a program that will provide skills-based training to employees.
ONE is a Novi-based battery storage company, founded in 2020, that in an effort to move away from nickel and cobalt, plans to use U.S. supply chain strategies on iron, lithium, iron phosphate, and graphite for low-cost battery chemistries for consumer and commercial electric vehicles.
Ijaz said the different chemistry allows for longer drive time, reduces fire risk, and eliminates dependence on materials such as cobalt and nickel, which are in short supply and controlled by foreign countries, such as China.
The facility will be one of the few wholly US-owned manufacturers of both LFP and anode-free cells. The new factory is expected to achieve a 45% reduction in carbon emissions by 2028 through a circular manufacturing approach, in partnership with DTE Energy, 6K Energy, and a leading North American battery recycler.
DTE Energy operates a new 100-megawatt power station across Ecorse Road from the future plant. Under a “gigafactory-to-grid” model, the utility will purchase the energy storage of finished batteries in the plant, which will be held back from delivery to automotive customers for a 30-day quality-assurance period, Ijaz said.
To support ONE’s $1.6 billion investment, the Michigan Strategic Fund approved:
• A $200 million Critical Industry Program performance-based grant through the Strategic Outreach and Attraction Reserve (“SOAR”) Fund;
• A $15 million Jobs for Michigan Investment Fund Loan; and
• State Essential Services Assessment Exemption valued at $21.6 million.
Michigan was chosen for the project over competing sites in the U.S. and Canada.
“We are excited to have a site that is being considered for this transformative clean energy manufacturing project,” said Van Buren Township Supervisor Kevin McNamara in a press release from the state. “We are well-positioned in a region that is widely known as the birthplace of automotive innovation. Our talented residents, our proximity to the Willow Run and Detroit Metropolitan Airports, and our strong community amenities make Van Buren Township a terrific place to do this kind of business.”