Fortescue has shored up million in funding to establish a US advanced manufacturing centre in Detroit, Michigan.
Support and incentives are to come from the Michigan Strategic Fund (MSF), as announced by the Michigan Economic Development Corporation (MEDC).
Fortescue will receive a $9 million performance-based grant, a state tax capture up to $2.3 million, and a $1.3 million state essential services assessment exemption over 15 years.
The Detroit brownfield redevelopment authority is also supporting the project through the local portion of the brownfield work plan valued at $4.2 million, and the city has offered an industrial facilities tax abatement valued at up to $7.6 million.
The company aims to establish the facility, to be dubbed Piquette Avenue, as a hub for the production of heavy industry batteries, fast chargers, and electrolysers.
Production is expected to commence in 2025 and the site has the potential to create up to 600 jobs as product lines ramp up to 2030.
“Fortescue’s advanced manufacturing centre will breathe fresh life into the birthplace of the automotive industry,” Fortescue Energy chief executive officer Mark Hutchinson said.
“We are committed to investing in the next generation of green manufacturing projects that will help decarbonise business and heavy industry, and in turn create a strong future for manufacturing jobs in the US.”
The new Fortescue site will be built on an existing facility originally constructed in 1920, boasting 410,000 square feet of space across 14 acres.
“Fortescue’s decision to locate in Detroit to develop its new advanced manufacturing centre adds to our city’s momentum in attracting sustainability and clean energy investments and the good-paying jobs they bring,” Detroit mayor Mike Duggan said.
“We are grateful to the Michigan Strategic Fund for its support of this project.”
Fortescue has a number of projects in the pipeline across the US, most recently entering talks with the US government for up to $US1 billion in funding for a Pacific Northwest Hydrogen Hub.
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