Fortescue, a global provider of zero emission resources based in Australia, announced plans to establish its U.S. Advanced Manufacturing Center on 601 Piquette Ave. in downtown Detroit with support from the Michigan Strategic Fund.
Fortescue expects to create up to 600 manufacturing and engineering jobs in Michigan that should support the state’s work to position itself as a leader in the future of mobility and vehicle electrification.
The Piquette Avenue facility is expected to become a major hub for Fortescue’s production of automotive and heavy industry batteries, hydrogen generators, fast chargers, and electrolyzers.
“Fortescue’s Advanced Manufacturing Center will breathe fresh life into the birthplace of the automotive industry,” says Mark Hutchinson, CEO of Fortescue. “We are committed to investing in the next generation of green manufacturing projects that will help decarbonize business and heavy industry, and in turn create a strong future for manufacturing jobs in the United States.”
Fortescue plans to rehabilitate the existing facility and prepare it for a future manufacturing and engineering workspace, where it will manufacture EV battery systems.
The first battery line is anticipated to be installed during the first half of 2025. The company plans to develop a comprehensive North American supply base, which is expected to provide Michigan suppliers with the opportunity to grow across multiple green energy industries.
The production in the facility initially will be focused on customers across North America, with potential for international sales based on expected economic and technical competitiveness, along with international customer requirements.
The project will result in an initial $35 million investment to refurbish and construct the Piquette Avenue facility. There also will be further investments upon full activation of the entire facility.
This effort has the potential to create up to 600 manufacturing and engineering jobs as product lines ramp up to 2030.
To support the project, the Michigan Strategic Fund approved:
- A $9 million Michigan Business Development Program performance-based grant.
- A 15-year, 100 percent state essential services assessment exemption valued at $1.3 million.
- State tax capture valued at $2.37 million for the reimbursement of brownfield activities at the site.
In addition, the project is requesting $5.2 million in TIF from the Michigan Department of Environment — Great Lakes and Energy to assist with environmental eligible activities.
Fortescue is a global green energy, metals, and technology company. It is working to find ways to eliminate emissions from heavy industry. The creation of the company’s first U.S. advanced manufacturing facility in Detroit should have a direct impact of the manufacturing know-how and skilled talent Michigan provides.
Fortescue evaluated 99 competing sites in 12 states before ultimately choosing Michigan, citing the state’s strong automotive OEM and auto supplier presence and the strength of Michigan’s automotive engineering talent.
The company plans to hire its workers from the city of Detroit and surrounding community, and will work with local organizations to train, support, and employ a world-class workforce.
The project also should reactivate an existing, vacant property and contaminated brownfield site, and will create the potential for future investment and growth by the company in the state.
“Fortescue’s decision to locate in Detroit to develop its new Advanced Manufacturing Center adds to our city’s momentum in attracting sustainability and clean energy investments and the good-paying jobs they bring,” says Detroit Mayor Mike Duggan. “It also is another major piece of the revitalization taking place on this stretch of Piquette Street, along with the redevelopment of the Fisher Body 21 and Studebaker plants into hundreds of units of new mixed-income housing.”
The City of Detroit Brownfield Redevelopment Authority is supporting the project through the local portion of the brownfield work plan valued at $4.24 million, and the city has offered an Industrial Facilities Tax abatement valued at up to $7.68 million.
