Two companies promise to create around 4500 jobs and invest around $4 billion to produce batteries for electric vehicles as part of economic growth projects that are expected to get $1 billion in incentives, tax breaks and other government assistance.
Michigan Gov. Gretchen Whitmer and Economic Progress announced plans and corresponding incentives Wednesday.
“We are seeing genuine momentum in our État. Au over the past year, the construction of production projects secured in our leadership in mobility, electrification, chips (semiconductors) and life sciences,” Whitmer said on one occasion in Grand Rapids welcoming the investments.
“We are proving that Michigan’s production industry is the most productive in the world. Our hard staff and cutting-edge corporations are adapting and growing. “
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Gotion, a Chinese production company, will build a nearly $2400 million plant in Big Rapids, about an hour north of Grand Rapids, which is expected to generate 2350 jobs. And in Wayne County’s Van Buren Township, Our Next Energy will build one billion battery production plants, which the state says will create more than 2100 new jobs. The company is headquartered in Novi.
Gotion will get a $715 million incentive package from the state. It has 3 main components, according to a note from the Michigan Economic Development Corporation:
Our Next Energy’s incentive program, totaling $236 million, includes:
The bills are the latest passed by the GOP-led Whitmer legislature targeting millions of taxpayer dollars to trap big business to expand or move to Michigan. In total, the two projects will provide $4 billion in investments to the government. .
To justify the need for a meaningful incentive for Gotion, the MEDC memo notes that electric cars are a developing industry and says it’s complicated to attract corporations to the field.
“Gotion was considered Michigan for previous mobile battery production allocations, but in the end chose locations in other key competing states based on incentive assistance submitted by those states. Incentives are needed to ensure that this allocation progresses in Michigan, that is, in a highly competitive environment. “says the note.
Michigan lawmakers recently sent $846 million to the state fund used to distribute incentive money. While that measure won broad bipartisan support, several key Republican lawmakers opposed the deal. That included state Rep. Thomas Albert, R-Lowell, who resigned as chairman of the tough House Appropriations Committee on how lawmakers wanted to use the money.
“Increased public spending has fueled inflation and played a major role in the economic struggles we face today. Additional expenses would only make matters worse. The measure that the Legislative Assembly is today is reckless and irresponsible for taxpayers, and I will vote against it, Alberto said at the time.
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Whitmer and legislative leaders have filed complaints abroad over other economic development deals, including one that provided Ford with more than $100 million. The drop intensified when Ford announced plans to cut 3,000 jobs worldwide, adding many of the upcoming cuts in Michigan.
The company is still on the line to get public money even with task cuts, as the incentive agreement discussed creating hourly tasks and the company laid off employees.
When asked about the main comparable points in the recently announced deals, Whitmer and MEDC CEO Quentin Messer said the cash distributed through the Critical Investment Fund is tied to corporate performance, Gotion, a company without the same Michigan presence as Ford, and Our Next Energy. Meet the task creation criteria.
“That means before a dollar (of) Michigan taxpayers returns to the company, they have to meet their obligations. These have been mutually agreed,” Messer said. We look forward to success, but we must make sure that we mitigate the inconvenience (and) the dangers to the more than 10 million Michiganders who sacrifice and make sure we have those resources. “
Contact Dave Boucher: dboucher@freepress. com or 313-938-4591. Follow him on Twitter @Dave_Boucher1.
Contact Arpan Lobo: alobo@freepress. com. Follow him on Twitter @arpanlobo.
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