Australian Company to Construct $35 Million Electric Vehicle Battery Plant in Detroit

Fortescue Metals Group Plans $35 Million EV Battery Plant in Detroit

Introduction

Fortescue Metals Group, an Australian-based company, has announced its plan to build a state-of-the-art electric vehicle (EV) battery systems plant in Detroit. This $35 million-dollar project aims to establish a major hub for Fortescue’s battery, charging, and hydrogen generator production.

Official Approval

After the initial announcement last month, the plan has now gained official approval from the Detroit Brownfield Redevelopment Authority. This marks an important milestone for Fortescue’s expansion into the United States.

Job Creation

The new plant is expected to create up to 600 jobs in the local area, providing a significant boost to the economy. This demonstrates Fortescue’s commitment to supporting local communities and contributing to job growth.

Tax Benefits

Fortescue will directly benefit from federal and local tax credits for battery modules. The Inflation Reduction Act, passed by Congress last year, offers a tax credit of $10/kWh for domestically produced battery models. This provides a strong financial incentive for Fortescue’s investment in the EV battery plant.

Favorable Manufacturing Environment

Fortescue Energy CEO Mark Hutchinson expressed his confidence in choosing Michigan and the United States as manufacturing sites. He highlighted the skilled workforce, existing supply chain, and significant incentives from state and federal governments, including the Inflation Reduction Act. These factors make Michigan and the United States highly attractive for Fortescue’s expansion plans.

Conclusion

The establishment of Fortescue’s $35 million-dollar EV battery plant in Detroit not only signifies the company’s commitment to clean energy solutions but also brings economic benefits to the local community. By leveraging tax credits, Fortescue aims to play a significant role in the growing EV industry and contribute to the development of sustainable transportation.

Read More of this Story at www.michiganradio.org – 2023-12-14 22:59:00