LANSING, Mich. — Governor Gretchen Whitmer recently announced that Fortescue, a global provider of zero-emission resources for the production of renewable energy, plans to establish its U.S. Advanced Manufacturing Center in Detroit. Strategic Development Group provided site selection and incentive negotiation services for the new site that will focus largely on producing EV batteries.
Fortescue expects to create up to 600 manufacturing and engineering jobs in Michigan that support the state’s work to position itself as the global leader in the future of mobility and vehicle electrification.
Working with SDG, Fortescue evaluated 99 competing sites in 12 states before ultimately choosing Michigan, citing the state’s strong automotive OEM and auto supplier presence and the strength of Michigan’s automotive engineering talent. The company plans to hire its workers from the City of Detroit and surrounding community, and will work with local organizations to train, support, and employ a world-class workforce.
Fortescue plans to rehabilitate the existing facility in Detroit and prepare it for a future manufacturing and engineering workspace, where it will manufacture EV battery systems. The first battery line is anticipated to be installed during the first half of 2025. The company plans to develop a comprehensive North American supply base that will provide Michigan suppliers with the opportunity to grow across multiple green energy industries.
To support the project, the Michigan Strategic Fund approved:
- A $9 million Michigan Business Development Program performance-based grant;
- A 15-year, 100 percent State Essential Services Assessment exemption valued at $1,300,950;
- State tax capture valued at $2,374,413 for the reimbursement of brownfield activities at the site.
In addition, the project is requesting $5,247,422 in TIF from the Michigan Department of Environment, Great Lakes and Energy to assist with environmental eligible activities.
Fortescue is a global green energy, metals and technology company, which is leading the world in finding the solutions to eliminate emissions from heavy industry. The creation of the company’s first U.S. Advanced Manufacturing Center in Detroit is a direct impact of the manufacturing know-how and skilled talent Michigan provides.
The project supports the state’s work to position itself as the global leader in future mobility and electric vehicle manufacturing and builds on Michigan’s leadership in advanced manufacturing and clean energy. It will also reactivate an existing, vacant property and contaminated brownfield site, and will create the potential for future investment and growth by the company in the state.
The City of Detroit Brownfield Redevelopment Authority is supporting the project through the local portion of the brownfield work plan valued at $4,246,411, and the city has offered an Industrial Facilities Tax abatement valued at up to $7,684,208.
Strategic Development Group provides site selection and incentive negotiation services for a diverse range of manufacturing, distribution, office, and corporate headquarters location projects. To discuss your company’s site location needs, click here to connect with our team!