MEDC details incentive package, job and investment conditions for Blue Oval Battery Michigan in Marshall

Kristen, a MEDC representative, told the House Oversight Subcommittee on Corporate Subsidies and State Investments and the House Committee on Homeland Security and Foreign Influence that the Blue Oval Battery Michigan project at the Marshall major campus is structured so that state cash grants flow to Blue Oval Battery Michigan, a wholly owned Ford entity, and not to suppliers.

"This is not a joint venture," Kristen said. "All disbursements under the CIP grant are to the Blue Oval Battery Michigan entity." Josh, a MEDC representative, added that no state dollars have been disbursed yet under the critical industry program (CIP) agreement and that the grant agreement limits reimbursable costs to eligible hard construction costs.

The revised incentive package and related state support were approved publicly by the Michigan Strategic Fund (MSF) board in July 2024 after Ford revised the project scope. Under the restructuring described at the committee hearing, the CIP cash grant was reduced from the originally approved $210 million to a base of $141 million, with the opportunity to earn up to $166 million if the company meets higher job and investment targets. To earn…