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