4 Michigan battery projects awarded $355 million in federal funding
By David Eggert
September 20, 2024
Four projects across Michigan will receive $355 million in federal funding to boost the domestic production of advanced batteries and battery materials and reduce dependence on foreign suppliers, the U.S. Department of Energy announced on Sept. 20.
The grants will help add about 500 permanent jobs in Van Buren Township in Wayne County, as well as in Flint and Muskegon, and in the state's Upper Peninsula; retain 425 jobs; and support 1,435 construction jobs, according to the DOE's Office of Manufacturing and Energy Supply Chains and the Michigan Infrastructure Office.
The awards are among more than $3 billion for 25 projects in 14 states, funded through a second round of battery materials processing and battery manufacturing and recycling grants under the 2021 Bipartisan Infrastructure Law.
Three of the Michigan projects are expected to receive a combined $90 million in state matching funds as well.
The federal grants include:
$145 million for Houghton-based Revex Technologies Inc., as part of its partnership with Eagle Mine in the Upper Peninsula, to turn metal-bearing waste into valuable critical minerals. Revex and Eagle Mine, a co-founder of Revex and the only primary nickel mine in the country, plan to construct three related facilities in Marquette County, strengthening the domestic nickel supply chain including by extracting cobalt, nickel and lithium from spent batteries. The $398 million project in Michigan's Champion Township and Forsyth Township will add 115 new jobs, retain 425 jobs and support 360 construction jobs. It will yield nickel production for at least 462,000 electric vehicles per year.
$100 million for Mountain View, Calif.-based Mitra Chem to accelerate the scale-up of iron-based cathode materials by building a modular plant in Muskegon. It will create 154 jobs and 625 construction jobs. In June, Mitra Chem and Parsippany, N.J.-based Sun Chemical announced a joint project to develop the first iron phosphate mass-production capability in North America. The project will supply battery materials for more than 300,000 EVs annually.
$60 million for Chicago-based NanoGraf Corp. to retrofit a Flint factory to produce enough silicon anode material to supply 1.5 million EVs a year. It is expected to add up to 150 jobs, 80 percent of them local. NanoGraf is the first to upscale domestic silicon monoxide production for battery use. It will be one of the world's largest silicon anode facilities.
$50 million for Boston-based Cabot Corp. to open a Van Buren Township facility, 35 miles west of Detroit. The plant will be the first production-scale facility in the U.S. to make battery-grade carbon nanotubes and conductive additive dispersions to support the domestic lithium ion battery supply chain. It will employ about 85 workers permanently and 250 construction workers.
"With this historic funding from the Biden-Harris administration and our congressional delegation, we are expanding our production of batteries for electric vehicles and clean energy storage, solidifying our position as a leader in advanced manufacturing and clean energy," Michigan Gov. Gretchen Whitmer said in a statement.
Revex will get up to $50 million from the Make It in Michigan Competitiveness Fund, a $337 million pot of state money designed to land projects through the Infrastructure and Jobs Act, the CHIPS and Science Act, and the Inflation Reduction Act. Mitra Chem will receive up to $25 million from the state fund. NanoGraf will get up to $15 million.
"This grant is essential for Revex to execute their plans, directly supporting our mission to innovate and lead in the production of critical materials for the battery market," Revex CEO John Rockwell said.
"As a U.S.-based and U.S.-founded company, we're committed to strengthening the domestic battery supply chain — and this factory is a big step forward," said NanoGraf CEO Francis Wang. "Our expansion into Michigan will allow us to leap to larger-scale production to meet national demands for high-performing EV batteries and consumer electronics."
"This award selection represents a pivotal moment for the entire U.S. battery industry," Mitra Chem CEO Vivas Kumar said. "By bringing advanced battery production to American soil, we're securing our energy future and positioning the U.S. at the forefront of the global electric vehicle revolution."
Mitra Chem said it anticipates getting additional state funding. Revex could receive up to $50 million more in state funds, according to the DOE, which said NanoGraf is expected to get support from Michigan Economic Development Corp.
In February, Gov. Whitmer announced the state would give $125 million in matching grants to advanced manufacturers and battery makers to help them leverage federal funds. There is $35 million remaining as part of the Battery and Advanced Manufacturing Challenge and about $200 million overall left in the competitiveness fund.
The projects were chosen based on their ability to bring federal dollars to the state as well as their potential to deliver good jobs, benefit disadvantaged communities and advance competitiveness in a key strategic sector. Gov. Whitmer encouraged applicants to offer fair pay, good benefits and skill benefits, and to protect their union rights.
Qualifying companies committed to using project labor agreements for construction and agreed to neutrality in union organizing efforts.
Energy Secretary Jennifer Granholm, a former Michigan governor, said the nation is in the midst of a "manufacturing revival." Michigan is poised to see more than $1 billion more in public-private investment, she said, and hundreds of new jobs for workers "who are essential to ensuring our national energy security."
The $355 million is the largest amount Michigan has won from any competitive Bipartisan Infrastructure Law program, according to the Whitmer administration. Before the funding is issued, the DOE will negotiate with the companies and conduct environmental reviews.