- Updates to Michigan Innovate Capital Fund program approved to continue providing essential support to high-tech startups across the state
- Award from U.S. Treasury to provide Technical Assistance support to suppliers in Michigan’s automotive manufacturing sector
- Lansing battery plant project on track under LG Energy Solution ownership
The Michigan Strategic Fund (MSF) approved a series of amendments and program updates that will continue to strengthen Michigan’s leadership in startup innovation, small business support and the state’s advanced manufacturing workforce.
“Whether supporting Michigan’s startup ecosystem, capitalizing on federal support for small businesses in our automotive manufacturing sector or ensuring the continued success of a key battery plant project in Lansing, today’s approved actions and projects by the MSF Board help Team Michigan deliver on the state’s ‘Make It in Michigan’ economic development strategy of supporting People, Places and Projects,” said Quentin L. Messer, Jr., CEO of the Michigan Economic Development Corporation and Chair of the MSF Board. “I’m grateful to Governor Whitmer, our bipartisan partners in the state legislature, and the volunteer MSF Board for their ongoing support and collaboration to deliver solutions and results for businesses and residents in our great state. Work remains, but today’s approvals reflect Team Michigan’s ongoing commitment to innovation and growth within our key industries.”
Michigan Innovate Capital Fund updates to enhance support provided to state’s high-tech startups
The Board also approved a series of Michigan Innovate Capital Fund (MICF) program updates and amendments to help the MEDC continue to provide essential support to high-tech startups in the state. In June 2023, the MSF approved the MICF program, which provides award incentives to nonprofit organizations that operate fund programs to invest in pre-seed and startup stage competitive edge technologies that require capital in the earliest stages of the commercialization process.
The approved measures include:
- An allocation of $5,000,000 from the Jobs for Michigan Investment Fund to the MICF program
- An amendment to the investment criteria, allowing MICF Investment Fund Managers to increase the exposure limit per company to a total of $500,000
- An amendment to the grant agreement between the MSF and the Invest Detroit Foundation ID Ventures to fund the continuation of investments in the form of loans and equity financing under the MICF program
- Award from U.S. Treasury program to support Michigan’s SEDI-owned automotive suppliers
Finally, the Board voted to accept federal funds awarded to the MEDC by U.S. Treasury, which will go towards providing Technical Assistance support to very small businesses and businesses owned and controlled by socially and economically disadvantaged individuals (SEDI).
- The State Small Business Credit Initiative (SSBCI) Investing in America Small Business Opportunity Program (SBOP) awarded the MEDC $9,092,364 to support the Michigan Auto Supplier Transition Program
- The new proposed program will seek to support SEDI-owned suppliers in Michigan’s automotive manufacturing sector, with a focus on those impacted by the transition to EVs.
- This federal funding will create additional opportunities for the MEDC Small Business Services team to provide small business support and resources in this critical sector. Additional activities around the Michigan Auto Supplier Transition Program will be presented to the MSF Board at a future meeting.
Lansing battery plant project to continue under LG Energy Solution ownership
The Board approved amendments to the MSF incentives authorized in January 2022 for the construction of an Ultium battery manufacturing facility in Lansing, originally a joint venture between GM and LG Energy Solution (LGES). Through the sale of GM’s portion of the battery plant and 100% transfer of state incentives already secured for the facility, LGES will wholly own the facility – ensuring the project stays on track and high-tech jobs and battery manufacturing remain in Michigan.
In committing to the agreement under the original Ultium joint venture, LGES is maintaining at least 1,360 Michigan jobs committed to by the original Ultium joint venture, guaranteeing the future of the Lansing facility and supporting continued job growth in the state.
Reassigning incentives to LGES as the new owner of the Lansing facility will ensure it remains a catalyst for continued investment in the region and accelerates cell production. To date, project successes include:
- Construction of the facility is 98% complete
- Over $2 billion invested to date
Building on the significant employment of Michigan’s construction and trade workforce over the past 18 months throughout its construction, LGES maintains a commitment to creating at least 1,360 good-paying, permanent jobs in the community
What They’re Saying:
“With its talented workforce and location in the heart of the U.S. auto industry, we see Michigan as a great bet to continue investing in,” said Bob Lee, Corporate Executive Vice President and Head of North America, LG Energy Solution. “We are playing a critical role in onshoring this strategic technology, and our investment in Lansing underscores our belief in the state, in which we established our first-ever North American battery-making plant in 2011.”
“This transition strengthens the Lansing region’s position as a leader in battery manufacturing, bringing increased investment, sustained jobs creation and a more diversified battery manufacturing ecosystem. LG Energy Solution is a global leader in developing and producing high-voltage batteries and related technology for electric vehicles, energy storage systems and mobility and IT applications,” said Bob Trezise, president and CEO of LEAP.
About Michigan Economic Development Corporation (MEDC)
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org.
Contact:
Otie McKinley
517-930-8049
mckinleyo@michigan.org
