Fortescue invests $35M in Michigan advanced manufacturing facility

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Image credit: Fortescue

Global green energy company Fortescue Metals Group has unveiled ambitious plans to inaugurate a cutting-edge Advanced Manufacturing Centre in Michigan, USA.

This strategic move involves a substantial investment of USD 35 million (AUD 54 million), signalling Fortescue’s commitment to expanding its global manufacturing capabilities and fostering sustainable technologies.

According to the ASX-listed company, the manufacturing facility is poised to become a significant player in the production of automotive and heavy industry batteries, hydrogen generators, fast chargers, and electrolysers.

In its initial phase, the project is expected to generate up to 600 jobs, injecting vitality into the region and establishing itself as a cornerstone for Fortescue’s innovative green manufacturing initiatives.

Dr Andrew Forrest, Fortescue’s executive chairman and founder, conveyed his excitement about the project, expressing that the Advanced Manufacturing Centre by Fortescue would rejuvenate the birthplace of the automotive industry.

“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 United States,” Forrest noted.

The choice of Michigan as the location for the Advanced Manufacturing Centre was deliberate, considering the state’s skilled workforce, established supply chain, and attractive incentives from both state and federal governments.

Mark Hutchinson, Fortescue Energy CEO, highlighted the benefits of this strategic decision, stating, “Michigan and the United States are extremely attractive places to manufacture, given the skilled workforce, existing supply chain and significant incentives from state and federal governments, including the Inflation Reduction Act.”

One notable advantage for Fortescue’s new manufacturing centre is its eligibility for Inflation Reduction Act tax credits for Battery Modules, providing up to USD 10 per kWh.

This incentive is anticipated to further stimulate the growth and development of the facility while contributing to the overall green transformation of the manufacturing sector.

The establishment of Fortescue’s Advanced Manufacturing Centre aligns with global efforts to transition towards sustainable and environmentally friendly practices.

By investing in green manufacturing projects, Fortescue aims not only to contribute to the reduction of carbon emissions but also to create a robust foundation for manufacturing jobs in the United States.