Michigan: Advanced Battery Capital of North America
Advanced Batteries and Energy Storage became a top priority when we launched an economic development strategy in 2006 to kickstart incentives and programs for new industry sectors where Michigan has distinct advantages and a solid infrastructure.
It was clear that Michigan—as home to more than 370 vehicle-related R&D and technical centers, 87,000+ engineers, and world-class engineering schools—was exceptionally positioned to address the critical national need of developing a domestic advanced battery manufacturing industry.
We proactively launched two aggressive, first-of-their-kind incentive programs to seed the industry and complement federal funding opportunities – Centers of Energy Excellence and an advanced battery credits program that was ultimately funded with more than $1 billion.
- $5.7 billion in announced private investment for development and growth of the advanced battery industry backed by $1.3 billion in U.S. government investment.
- Investment expected to generate over 21,000 Michigan jobs (direct) over the next several years.
- Home to nine of 10 top automotive original equipment manufacturers (OEMs) developing hybrid electric vehicles, plug-in hybrid electric vehicles and electric vehicles.
- Home to nearly 40 companies operating in key battery supply chain segments.
The Michigan Advantage for Advanced Batteries and Energy Storage
In 2009, the U.S Department of Energy allocated $2.4 billion to spur domestic development of new battery technology, advanced power trains and vehicle platforms. Michigan answered the call with a strategy and investment commitment that was backed by our depth and breadth of automotive technology and manufacturing resources. These advantages led to Michigan’s $1.36 billion DOE award, which has created a future for growth in Michigan that just keeps improving:
- Unmatched Value Chain: The plan that brought the advanced battery industry to Michigan tapped into existing value chain strengths. Michigan’s value chain for advanced battery and energy storage fills the spectrum. R&D, engineering and prototyping, component manufacturing, testing and assembly. Michigan’s automotive legacy offers an advanced manufacturing infrastructure found nowhere else.
- Access to Talent: Not only is the education level of our manufacturing workforce one of the highest in the nation, we are home to the fourth-largest high-tech workforce in the U.S. with more than 87,000 engineers and 70,000 R&D professionals. We not only lead the country in the number of working engineers, but we’re also one of the five best states at growing and graduating them.
- Research & Development: Michigan is #1 for vehicle-related R&D expenditures and represents 75% of U.S. total. University of Michigan is #1 for R&D spending at U.S. public universities. Michigan's University Research Corridor (Michigan State University, University of Michigan and Wayne State University) ranks among the nation's best and rivals nationally known innovation clusters including the Research Triangle and Silicon Valley. Our universities and colleges work together with business and industry to commercialize research.
- Strategic Growth: Much has been accomplished, but we’re just getting started. As Michigan continues our tactical industry development, we are also anticipating the needs of the U.S. Smart Grid and energy production, transmission and storage.
