Michigan among top three states for EV battery production

Report says state should produce up to 136 gigawatt hours’ worth of EV batteries per year by 2030.
Michigan among top three states for EV battery production
<strong> Courtesy Michigan Economic Development Corporation </strong>

A new report suggests Michigan is among the nation’s key players for electric vehicle battery manufacturing.

The U.S. Department of Energy last week highlighted EV battery manufacturing capacity in North America and included Michigan among the top three states for the highest planned growth.

According to data sourced from the department’s Argonne National Laboratory, Michigan will be able to manufacture between 97 and 136 gigawatt hours’ worth of EV batteries per year by 2030. Georgia and Kentucky also were included for the same capacity.

The Michigan Economic Development Corporation (MEDC) noted the state’s attraction of over $14 billion in EV and battery investments for its potential to lead the charge.

“2022 was a year like no other, as Michigan welcomed transformational investments that further demonstrated our leadership in the mobility industry,” said Quentin Messer Jr., CEO of MEDC. “It should come as no surprise that Michigan is being recognized as a leader and serious competitor as we move toward an electrified future.”

In West Michigan, several planned manufacturing investments underscore the state’s recent recognition. Gotion’s plans to build a $2.4 billion battery plant near Big Rapids were announced in fall 2022, though questions have been raised regarding the project’s capacity and impact.

In addition, LG Energy Solution last year unveiled a $1.7 billion expansion project for its battery manufacturing plant in Holland. The expansion is expected to create 1,200 new jobs by 2025 and is expected to serve as an incubating hub to support next-generation battery professionals.

“Michigan was a natural choice (for) our commitment of building an impactful global business because of its rich pool of talent, being close to the geographic epicenter of the automotive industry and its strong support,” Bonchul Koo, president of LGES Michigan, said at the time of the announcement.

The U.S. Department of Energy expects contributions from states like Michigan to increase North America’s overall battery manufacturing capacity from 55 gigawatt hours per year in 2021 to nearly 1,000 gigawatt hours by 2030.

With various projects making headlines, the push for EVs and EV battery manufacturing may seem sudden. But Amanda Murray, vice president of business solutions at Lakeshore Advantage, told the Business Journal in October the transition still will take some time.

“The transition will be gradual,” Murray said. “A switch won’t flip, and it will all be EV. With the battery projects we’re hearing, they sound like they’ll be here fast, but they’re years in the making.”

At the same time, some local leaders are eager for Michigan to remain up to speed with this transformation.

“We have to recognize we have 40,000 people working in the auto industry as it goes through the most dramatic transformation maybe since it was started,” Randy Thelen, president and CEO of The Right Place, said in 2022. “It is imperative Michigan and the Midwest retain and capture a big share of that transformation.”

This story can be found in the Jan. 23 issue of the Grand Rapids Business Journal. To get more stories like this delivered to your mailbox, subscribe here.