Aerial view of the Detroit Diesel Corporation facility in Redford Township.
$1.5 Billion in Investment Coming to Ypsilanti and Redford Townships
Los Alamos National Laboratory chooses Ypsilanti Township for high-performance computing facility; Detroit Diesel Corporation secures state support to expand, retain jobs in Redford Township
Governor Gretchen Whitmer today applauded Michigan Strategic Fund Board (MSF) action to support two projects utilizing the Strategic Outreach and Attraction Reserve (SOAR) Fund led by the University of Michigan and Detroit Diesel Corporation, respectively, in Southeast Michigan. Combined, the projects will create at least 636 new jobs, retain over 2,000 jobs, and secure capital investments of roughly $1.53 billion.
“Today’s investments into the University of Michigan and Detroit Diesel Corporation will create more than 600 good-paying jobs and continue growing our cutting-edge manufacturing economy,” said Governor Gretchen Whitmer. “To lead the future of technology and the auto industry, we must continue competing to win projects that create in-demand, high-skill jobs. Let’s continue using and expanding our bipartisan economic development toolkit to ensure that everyone can ‘make it’ in Michigan.”
“Michigan is proud to earn these significant investments from, Los Alamos National Laboratory, the University of Michigan, and Detroit Diesel Corporation. We are especially proud to know these projects and others before the Michigan Strategic Fund Board chose Michigan because of our access to strong, skilled Michiganders and the business environment we’re building to create opportunities,” said Quentin L. Messer, Jr., CEO of the Michigan Economic Development Corporation (MEDC) and Chair of the MSF Board. “While work remains, the ‘Make It In Michigan’ economic development strategy focused on People, Places and Projects is paying dividends. As Team Michigan continues to help companies of all sizes make their supply chains more efficient, I look forward to greater growth and innovation continuing in 2025.”
University of Michigan and Los Alamos National Laboratory Secure State Support for High-Performance Computing Facilities Focused on Innovative Solutions to National Security, Energy Stability
Overview:
The MSF Board today approved a $100 million Strategic Site Readiness Program (SSRP) performance-based grant for the University of Michigan (U-M) to begin readying land in Ypsilanti Township (Washtenaw County) for a high-performance computing facility. The facility will house two computing centers. One will be for federally funded research related to national security, cybersecurity, artificial intelligence, energy security solutions, and more, led by Los Alamos National Laboratory. The other, smaller center will be used for research and development by university faculty and students and other collaborating universities.
High-performance computing involves extremely intelligent, fast, and accurate scientific computation.
The project anticipates creating at least 200 knowledge-economy jobs paying nearly $200,000 plus benefits for a full-time employee. The project also represents a $1.25 billion investment, with support coming from Los Alamos National Laboratory ($300 million), U-M ($850 million) and the state of Michigan ($100 million).
Why It Matters:
Outside of the local and regional benefits, this project presents an immense opportunity to expand Michigan’s R&D and innovation ecosystems by growing existing businesses and welcoming new ones with federal funding from the U.S. departments of Energy and Defense, respectively. In doing so, it delivers on all three Make It in Michigan components: Attracts and retains people for the lab’s workforce, boosts the vibrancy of place, and wins a significant, transformative project.
The project leverages existing assets – including U-M’s Michigan Institute for Computational Discovery & Engineering (MICDE) and computer architecture group – and boosts Michigan’s appeal as a place for entrepreneurs, innovation across multiple disciplines by offering high-paying, knowledge-economy jobs, and opportunities for students and career professionals alike.
The build-up will also provide numerous construction jobs and the opportunity for materials purchasing from Michigan businesses. The facility expects to be fully operational by 2030, with vertical construction starting in 2026.
What They’re Saying:
“The data-intensive work we do at Los Alamos National Laboratory requires sophisticated and powerful computing resources. Our partnership with the University of Michigan will combine the capabilities of our two great institutions to further R&D for critical national security programs that utilize high-performance computing and AI, as well as other capabilities, such as advanced materials research and manufacturing,” said Thom Mason, Director of Los Alamos National Laboratory. “We’re looking forward to working with the University to advance this work to benefit the nation.”
“We are deeply grateful to the Michigan Economic Development Corporation and Michigan Strategic Fund Board for their visionary investment in the future of Michigan,” said University of Michigan President Santa J. Ono. “This generous grant helps to position Michigan as a leader in national security, artificial intelligence, clean energy, and advanced research. The partnership between the University of Michigan and Los Alamos National Laboratory represents a transformative opportunity to drive innovation, strengthen our economy, and create high-paying jobs right here in Michigan. We are honored to collaborate on this impactful initiative and look forward to the profound benefits it will bring to our state and beyond.”
Detroit Diesel Corporation Expanding in Redford Township to Support Truck Manufacturing Supply, Strengthen Workforce
Overview:
Detroit Diesel Corporation, a leader in North American engine technology for commercial vehicles, and a part of Daimler Truck North America LLC (DTNA), will expand its existing facility in Redford Township (Wayne County) with the support of a $27.7 million performance-based Critical Industry Program grant. The company also received MSF support for a State Essential Services Assessment (SESA) abatement with an estimated value of up to $3.29 million.
Overall, the project anticipates a capital investment of up to $285 million to expand and diversify production of internal combustion engine (ICE) and zero-emission vehicle (ZEV) components for medium- and heavy-duty trucks, creating up to 436 new jobs to the site and retaining 2,000.
Why It Matters:
Detroit Diesel Corporation has existed since 1938. The performance-based incentive for this project ensures further stability for Michigan residents employed by the company, which has been a longstanding partner with the United Auto Workers to provide competitive wages and comprehensive benefits. Supporting the company helps create hundreds of new jobs while bolstering Michigan as an international leader in the automotive industry for both manufacturers and the associated supply chain.
Further, as the technology for ZEVs continues to evolve, such an investment invites the opportunity to diversify the state’s supply chain beyond light vehicles to meet a growing demand for cleaner, more fuel-efficient engines and components. Commercial trucks face especially unique challenges in the transition to cleaner, more efficient technologies – including infrastructure, performance, reliability, cargo type, distance and terrain traveled, and more – so such an investment also helps to foster an environment for expanded R&D in this sector.
What They’re Saying:
“Our Detroit Manufacturing Plant, with its legacy of over 85 years in Michigan, stands as a testament to innovation and progress. This expansion is about more than just innovation; it’s about creating job opportunities and upskilling our workforce to meet the demands of tomorrow’s technology, while helping to stabilize the heavy-duty supply chain,” said Matt Pfaffenbach, Vice President of Powertrain Operations. “This transformative project will propel us into a new era of manufacturing excellence while strengthening our role in the industry and bringing significant growth to the community we call home. It would not be possible without the support of the MEDC, and we are proud to support both our community and our employees through this initiative.”
“The transition to electric vehicles is the next step in motorized transportation, and it makes sense from a historical perspective that Wayne County be positioned at the center of this progress. As such, I am extremely pleased by the decision of Detroit Diesel Corporation to expand its footprint in Redford Township by investing in the production of electric axles and battery modules/pack assembly, and other measures,” said Wayne County Executive Warren C. Evans. “This company’s expansion will create 436 new jobs and retain hundreds more, which is a huge win for one of our older, core communities as we continue to take Wayne County’s economic development to the next level.”
“Redford Township is proud to be partnering with Detroit Diesel Corporation and MEDC on this project,” said Redford Township Supervisor Pat McRae. “It will bring innovation and continued growth of their business here in Redford Township as we continue to move Redford Township forward.”
