Ford, CATL consider battery plant in Michigan amid U.S.-China tensions

**Airforceguy** · December-15-22, 05:03 PM

This would be a nice pick up for Michigan...
Ford, CATL consider battery plant in Michigan amid U.S.-China tensions

"Ford Motor Co. and China's Contemporary Amperex Technology Co. Ltd. are considering building a battery manufacturing plant in Michigan in a complex arrangement designed to reap new tax benefits without running afoul of U.S.-China political sensitivities.Michigan has emerged along with Virginia as a potential home of the multibillion-dollar facility, according to people familiar with the matter, who asked not to be identified discussing sensitive negotiations. The factory will provide lithium iron phosphate batteries for Ford's electric models.

"The companies are weighing a novel ownership structure under which Ford would own 100 percent of the plant, including the building and the infrastructure, while CATL would operate the factory and own the technology to build the cells, the people said. Such an arrangement would let the facility qualify for lucrative production tax credits under the new Inflation Reduction Act while requiring no direct financial investment from CATL.
https://www.crainsdetroit.com/manufa...plant-michigan

**Richard** · February-13-23, 12:55 PM

The announcement is said to reveal detailed plans for the new Marshall, Michigan plant, as well as the addition of 2,500 jobs. It's reported that the plant will be built at the intersection of Interstates 69 and 94.

However, sources close to Ford reportedly claim that the partnership between Ford and CATL is mostly for technical knowhow. Ford is said to own the plant and will employ the workers, while CATL will provide battery technology. That partnership structure could be so Ford can take advantage of rules put in place by the new Inflation Reduction Act [[IRA), which restricts EV tax credits from manufacturers whose battery components are assembled by a "foreign entity of concern."

https://www.thedrive.com/news/ford-a...y-plant-report

But yet in an April 27 2021 Ford release they had this to say.

$185 million collaborative learning lab coming next year will develop and manufacture lithium ion and solid-state vehicle battery cells and arrays, test manufacturing approaches, while team optimizes all aspects of the value chain – from mines to recycling

DEARBORN, Mich., April 27, 2021 – Ford today announces a new global battery center of excellence – called Ford Ion Park – to accelerate research and development of battery and battery cell technology – including future battery manufacturing.
“We’re already scaling production of all-electric vehicles around the world as more customers experience and crave the fun-to-drive benefits of electric vehicles with zero emissions,” said Hau Thai-Tang, Ford's chief product platform and operations officer. “Investing in more battery R&D ultimately will help us speed the process to deliver more, even better, lower cost EVs for customers over time.”
The company is building on nearly two decades of battery expertise by centralizing a cross-functional team of 150 experts in battery technology development, research, manufacturing, planning, purchasing, quality and finance to help Ford more quickly develop and manufacture battery cells and batteries.

https://media.ford.com/content/fordm...ttery-r-d.html

So why does Ford have to team up with China for technological know how after spending $150 million and saying they are doing it based on 100 years of technical know how.

Michigan is putting up 1 billion to Ford in incentives verses Virginias $250 million,while know full well that because of the weight of batteries and cost of shipping the only way to produce batteries competitively is by locating them as close to the automotive manufacturers,so Michigan would have been the most logical place to locate.

It would cost Ford more then the billion they are receiving to locate in another state,that was a billion dollar gift by the state of Michigan for something they already had in the bag.

**401don** · February-13-23, 01:26 PM

Based on the articles I've seen the last couple of days there appears to be a lot of people in the Marshall area opposed to it. I get that you can't find old industrial sites this large but are there not other sites near major highways where the land is less valuable than 2000 acres of farmland.

**Gistok** · February-13-23, 01:32 PM

Marshall Michigan, once considered to be in the running for state capital in the 1840s [when Detroit was the capital], is a very historic old town with lots of early 19th century charm... they probably don't want to change that.

I would have thought that the area near Detroit Metro Airport [near I-94 & I-275] would have been an ideal location... where the failed Aerotropolis once planned by Wayne County was land banked.

**Richard** · February-13-23, 04:07 PM

Aerotropolis has not failed as the intent,they changed the name,they are sleeping until the bridge to nowhere gets finished,everything in the bigger picture was dependent on that and gaining control of the airport that used to build the bombers,I forget it’s name.Willow Run?

They have been building the tech centers and establishing the warehouses etc and setting the stages for the hotels,they are just mentioning it 4th page down in the corner,quietly.

Day late and dollar short,Marshall would have been good to buy real estate in,I am thinking it’s charm is about to go mainstream strip mall.

**Henry Whalley** · February-13-23, 08:34 PM

Originally Posted by Gistok

...where the failed Aerotropolis once planned by Wayne County was land banked.

Perhaps 'moribund' is a better word to describe the Detroit Aerotropolis? It seems like nothing good comes out of Romulus.

**Richard** · February-14-23, 12:35 AM

You guys live there and you do not even know what’s going on that is changing the region forever,by design it makes the city of Detroit a bedroom community and not a city.

Last update was December of 2022,hardly considered failed or dead in the water.

https://www.detroitaero.org/news/

It still covers 6000 acres from Detroit city airport to Willow Run,the new bridge was the finial obstacle,so follow that highway and you see the boundary,City of Detroit,Hamtramck,etc is not in that picture.

**Gistok** · February-14-23, 04:41 PM

Originally Posted by Richard

You guys live there and you do not even know what’s going on that is changing the region forever,by design it makes the city of Detroit a bedroom community and not a city.

Since you're not from here, you may not know of all the problems that Wayne County went thru with Aerotropolis. Originally Aerotropolis was not hugely successful, due to the Michigan Supreme Court voting down some of the processes involved to land banking for that venture.

**Henry Whalley** · February-14-23, 06:41 PM

Originally Posted by Gistok

...not hugely successful, due to the Michigan Supreme Court voting down some of the processes involved to land banking for that venture.

So, is it dead?

P.S. In any case, the name Romulus should be changed because it elicits only negative connotations, e.g., strip clubs, acres of long-term parking, failed horse-racing tracks, massage parlors, cheap motels, fast food, etc. Even the Romans didn't name their capitol Romulus! It could be a medical term for a large facial boil contracted by shaving in a slimy foxhole or trench :[[

**Richard** · February-14-23, 07:04 PM

Originally Posted by Gistok

Since you're not from here, you may not know of all the problems that Wayne County went thru with Aerotropolis. Originally Aerotropolis was not hugely successful, due to the Michigan Supreme Court voting down some of the processes involved to land banking for that venture.

It’s irrelevant weather I am there or not,you are there but clearly thought that it was no longer in existence.

Must have been a ghost that keeps updating their site,they have a list of all of the projects that have been developed in the last few years it’s still ongoing,the new bridge was the missing link for a complete transportation system.

All they did was change the name.

Notice how quickly they shot down the mayor of Detroits idea of developing the city airport,less then 2 days, lots of powers to be that want to make that happen,spread over multiple counties.

I am aware of it because I pay attention to it because it impacts the city of Detroit,in case if you have not noticed,the internet works across the whole country.

Heck people do not even have to live in the same state their job is in anymore or even country.

Other then the fairgrounds property and the city airport they do not really need Wayne County in it at all they already have their corridor all the way to Willow Run.

Willow Run has already moved over 200m lbs of cargo,that exactly what they said they were going to do with it,long before it last sold.

What does that do for cargo operations at Detroit international,what does it do for intended cargo use at Detroit city air port?

You know how much lost revenue to the city that is on a yearly basis?

Look at the way your fellow citizen talks about Romulus,you do not think that they are not looking at it as a way to crush Detroit just out of spite?

They have already sold enough hotel sites that once developed will out number rooms and convention space that Detroit will never be able to compete with.

They are far from dead.

Suburbs are Ponzi schemes,without new development they age out and die,all of those places are going to do what it takes to develop what they said they are going to do as a matter of existence,they are not going to care who gets thrown under the bus in the process,they are not doing it because they want to,it’s because they have to.

Considering the billions involved,even more of a motivating factor.

Sense you live there surely you can see the state is in the handing out billions mood in order to attract investment,not millions for 2500 jobs,billions,do you really think at this time they are going to oppose any development?

Look at the bright side of keeping on doing what you are doing,you will get the pleasure of telling a whole lot more people - you do not live here so you do not know.

That mentality has not worked for the last 50 years and now all of the sudden it will?

Thats the problem,you spend more time and energy telling people that they do not live there instead of making it so they have a reason to live there.

It’s a whole big country out there with opportunity around every corner,what makes you so special and what do you have to offer that would compel people to locate there.

One would think that would be goal #1 alongside of giving a reason for the younger folk to stick around and not move off to greener pastures because people are stuck in the old ways that clearly did not work.

Elections are over,when was the last time anybody heard any local politicians talking about fighting for their people of the city for change outside of pandering? Crickets.

**Henry Whalley** · February-14-23, 07:49 PM

Originally Posted by richard

it’s irrelevant weather...

.tldr

**Gistok** · February-14-23, 07:55 PM

Ugh... too many words.

No, I knew Aerotropolis existed, just not in the form intended... because of Eminent Domain. The Michigan Supreme Court struck down Eminent Domain in Michigan for any business use... such as Aerotropolis. Wayne County was attempting to Eminent Domain a large swath of mostly empty property near Detroit Metro... but the Michigan Supreme Court said Eminent Domain was only for public projects in Michigan... such as the Gordie Howe Bridge approach. Other states can still take your property away [with compensation] for business reasons, but not Michigan. This explains why Comerica Park and Ford Field land was gotten via Eminent Domain [back in the late 1990s], but LCA had to have the Ilitches fend for themselves in parcel purchasing in 2016 era.

So instead of Aerotropolis being one large parcel of land between the 2 airports... it has become [in its' current form]... a separate loose group of detached parcels in Wayne and Washtenaw Counties.

The Eminent Domain ruling by the Michigan Supreme Court took place in 2005...
https://core.ac.uk/download/pdf/56688655.pdf