LANSING – A Michigan electric vehicle battery manufacturer will not face financial penalties for moving production out of state. The company told the state earlier this month it planned to close two EV plants and lay off nearly 200 workers.
Akasol received $900,000 from the Michigan Strategic Fund to establish its metro Detroit presence nearly six years ago, according to the Michigan Economic Development Corporation, MLive reported.
The MSF in June 2019 approved Akasol for a $2.24 million Michigan Business Development Program performance-based grant for a proposed $40 million manufacturing facility in metro Detroit that would have created 224 jobs.
The company gave notice to the state of Michigan on Feb. 11 it plans to close the two Detroit-area plants and lay off 188 workers.
The two plants in Hazel Park and Warren are set to close on April 14. BorgWarner said it plans to shift production from those facilities to an existing plant in Seneca, S.C.
“We believe in our battery product portfolio and the opportunity for continued growth as customers increasingly require innovative eMobility solutions,” a spokesperson with BorgWarner said in an email.
“We cannot go into specifics on personnel matters, but we aim to affect the fewest number of people possible.”
Akasol creates high-performance lithium-ion battery systems for electric and hybrid vehicles.
The company was one of several battery manufacturers, including Rivian, Magna International, FLO and XL Fleet, that were awarded state funding for multi-million-dollar projects as part of Michigan’s bid on the electric vehicle market.
This story was published on MLive
