(MENAFN) Ford Motor Co. has unveiled plans to construct a new USD3.5 billion electric vehicle battery factory in Michigan, located approximately 100 miles west of Detroit. The proposed plant is expected to provide employment for around 2,500 individuals and is part of the company's strategic vision to transition to a fully-electric fleet. During a meeting of the Michigan Strategic Fund, the tax incentive package was approved for the project, which will be situated near the city of Marshall. The plant will be constructed on a site that is currently being prepared for industrial development, positioned near the intersection of Interstates 94 and 69.
According to Gabby Bruno, director of economic development for Ford, Michigan faced significant competition from various states and countries to secure the investment for the project. The Michigan Strategic Outreach and Attraction Reserve Fund, also known as SOAR, will provide about USD210 million for the plant, which is specifically designed to attract industry and jobs to the state. However, the total incentive package for the project is yet to be disclosed.
The SOAR Fund has been receiving funds from Michigan's general fund since it was first established in December 2021, with a total amount of nearly USD1.8 billion. Last week, a tax-relief bill was passed in the Michigan House, which could potentially inject up to USD1.5 billion into the SOAR Fund over three fiscal years, along with an USD800 million one-time deposit, as proposed by Gov. Gretchen Whitmer in her budget plan.
Although the tax-relief bill still requires approval by the state Senate, where Democrats currently hold a two-seat majority, it has already been criticized by Republicans for offering insufficient relief to taxpayers while extending excessive benefits to large corporations. Ford has also scheduled a press conference to announce its plans for electric vehicles later in the day.
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