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 the base payment the company must create at least 1,700 qualified jobs and achieve $2.5 billion in capital investment by March 31, 2028. The company may earn additional amounts if it reaches 2,100 jobs and $3.0 billion in investment by the same date; failure to meet commitments can trigger repayment requirements, the MEDC representatives said.

The MEDC representatives also outlined other state support for site readiness and infrastructure: a Strategic Site Readiness Program (SSRP) allocation totaling about $185.3 million, of which about $120.3 million is tied to the Blue Oval site; a legislative appropriation of $299.7 million described in testimony as going to "META" for surrounding site development activities; and a $330 million appropriation to the Michigan Department of Transportation (MDOT) for road work serving the major campus and regional network. The MEDC said an MOU among MDOT, the MEDC and the named site authority describes uses of the $330 million but that MDOT controls the funds.

MEDC officials also said they had updated the project's wage commitments: the starting base wage under the amended package is $25 per hour, about $5 above the county median wage cited at the hearing ($21.52 for Calhoun County). Josh said the state used a REMI (Regional Economic Modeling, Inc.) analysis to estimate economic impacts, and that the revised REMI model shows a positive return of roughly $1.21 in net new taxes for every $1 of state incentives; the model also projected about $24.9 billion in new personal income taxes over 20 years tied to direct and indirect jobs from the project.

Committee members pressed MEDC officials on how incentive dollars are monitored and what expenses are eligible for reimbursement. Kristen said licensing fees paid to suppliers such as Contemporary Amperex Technology Co. Limited (CATL) are not eligible for reimbursement under the CIP agreement and that reimbursements are limited to defined hard construction costs. "We're not reimbursing licensing fees or anything like that with state dollars," Kristen said.

Committee members asked about the current construction and hiring timeline. Josh said construction work was active and that more than 1,000 construction workers were on site regularly; he said site construction activities were expected to continue through 2026 with hiring ramping in 2026 and the performance milestone and verification of job and investment commitments due March 31, 2028. MEDC officials also listed community benefits reported by Ford and partners, including more than $450,000 in donations to local organizations, roughly 1,300 proposed or completed housing units in the area since the announcement, a 218‑acre conservation easement, 245 acres designated for conservation on the campus and an on‑site tree‑planting effort described as about 1,000 trees.

No committee action was reported on incentive approvals at this hearing; the MEDC representatives said the MSF board approved the grants in prior public meetings and that the legislature provided appropriations in 2023. Committee members requested written follow‑up on several points, including a breakdown of the REMI inputs and detail on SSRP adjustments tied to the project's resizing.

Ending: MEDC officials said they will provide follow‑up materials and that grant disbursements remain contingent on the project meeting the contractually required milestones. The committees signaled interest in additional oversight materials, including the REMI model inputs and documentation of due diligence procedures.