It’s not surprising that the state that put the world on wheels and revolutionized mobility is leading the charge in the transition to clean energy. Clean energy companies of all sizes and specialties are choosing to invest in Michigan, and the state has the workforce to meet their needs. Michigan’s leaders see the value of the clean energy sector, creating and passing legislation and implementing initiatives to support the industry and, ultimately, combat climate change.
To lay the groundwork for clean energy companies to invest in the state, Michigan has developed a forward-thinking approach to sustainability and clean technology. The MI Healthy Climate Plan, first unveiled in 2022, created a pathway for Michigan to reach 100% carbon neutrality by 2050 by focusing heavily on three areas of impact: energy, transportation and buildings. Since the plan was shared, Michigan has made major strides in its efforts, even moving the goal forward to have these zero-emission standards in place by 2035. In turn, the state is addressing the worst impacts of the climate crisis, creating good-paying jobs and building a healthier and more prosperous, equitable and sustainable future for Michigan and the world.
At the federal level, the clean energy industry was a major focus for the Inflation Reduction Act (IRA). The IRA aimed to stabilize prices and control inflation when it was passed in August 2022, and included tax incentives, grants, funding and investment towards clean energy projects. By focusing on clean energy, the projects supported by the IRA have created thousands of jobs, saved consumers money and helped to slow the effects of climate change.
Michigan’s major utility providers, Consumers Energy and DTE Energy, are also committed to renewable resources, serving as a vital component to achieving carbon neutrality goals and empowering businesses to embrace sustainability. Consumers Energy built one of Michigan’s first renewable energy plants, and in a full circle moment, the company has completely embraced this model, with plans to end coal use by 2025. Additionally, DTE Energy has already invested over $4 billion in renewable energy. The company’s 20 wind parks and 33 solar parks deliver power to more than 750,000 homes and businesses, with plans to increase that number to 5 million by 2042. Together, Consumers Energy and DTE Energy are providing a clean, renewable infrastructure to match the goals of both businesses and the state.
Backed by the MI Health Climate Plan and the IRA, Michigan has made its push to dominate the clean energy industry. Over the last two years, the state caught the attention and investment of innovative startups and both national and global leaders, resulting in a combined total investment of over $20 billion. This includes Fortescue, an Australia-based manufacturer, developer and operator of zero-emission resources, which invested $35 million to build its first U.S. Advanced Manufacturing Center in Detroit, after evaluating 99 other sites across 12 states. Mark Hutchinson, CEO at Fortescue, shared that the company is “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 picked Michigan based on the state’s support of the project, automotive prowess and engineering talent.
Another international company making the move to Michigan is EcoG, which established its U.S. headquarters in Detroit’s Corktown neighborhood with a $14.4 million investment. The Germany-based provider of EV charging stations already collaborates with the Big Three automakers, alongside more than 60 other industrial partners around the world. Michigan was chosen over sites in Georgia and Ohio due to Detroit’s heritage as a home of mobility innovation alongside the opportunity for synergy with new and existing companies. Joerg Heuer, CEO at EcoG, shared his admiration for Michigan’s “strong drive to transform the mobility industry” and that the team is “excited to collaborate with other innovation leaders out of Michigan Central.”
LG Energy Solution (LGES) continues to grow its Holland plant with its $1.7 billion investment in 2022. The investment quintupled the plant’s capacity as it produces battery components for electric vehicles (EV). Specifically, LGES aims to alleviate range anxiety, or the fear that drivers have that their EV will run out of charge during longer journeys. The company’s long cell design batteries improve energy density while simplifying the battery pack structure. With this product, LGES is helping automakers create more efficient vehicles that address a major barrier for consumers looking to enter the EV market.
Michigan’s homegrown clean energy companies are also investing heavily in the state. LuxWall, a leading designer and manufacturer of energy-efficient windows based in Ypsilanti, announced a $165 million investment to construct two manufacturing facilities in Michigan. The company is building the world’s first high-volume vacuum-insulated glass production facility, which will allow LuxWall to scale and manufacture in commercial volumes. The second facility will triple LuxWall’s production capacity and, in a full-circle moment for the clean energy company, be located on the site of a former coal plant in Southwest Detroit. In total, the investment will create over 450 high-paying jobs, with Scott Thomsen, CEO and co-founder of LuxWall, sharing that the company will create training programs to hire, develop and promote Michigan talent.
The need for clean energy solutions for consumers and businesses will only increase in the years ahead, but there isn’t time to delay. Action is already being taken in the Great Lakes State, and as a result, Michigan will only further itself as a global leader in the clean energy economy. In turn, businesses will continue to invest in the state, just as Fortescue, EcoG, LuxWall and many others already have. As the fight against climate change wages on, the importance of clean energy companies – and the locations where their businesses can thrive – will only increase.
