Fortescue signs deal on Detroit manufacturing base

Piquette Avenue site

The Michigan Economic Development Corporation has announced that Michigan Strategic Fund (MSF) has approved support for mining giant Fortescue to establish a US Advanced Manufacturing Center in Detroit, Michigan.

The Piquette Avenue facility will become a major hub for Fortescue’s production of automotive and heavy industry batteries, fast chargers and electrolyzers.

Production is expected to start in 2025. As the plant ramps up operations through to 2030, about 600 jobs are expected to be created.

Fortescue Energy CEO, Mark Hutchinson, said, “Fortescue’s Advanced Manufacturing Center will breathe fresh life into the birthplace of the automotive industry.

“We are 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.”

To support the project, the MSF approved:

- $9 million Michigan Business Development Program performance-based grant

- A 15-year, 100% State Essential Services Assessment exemption valued at $1.3 million

- State tax capture valued at approx. £2.37 million for the reimbursement of brownfield activities at the site.

The City of Detroit Brownfield Redevelopment Authority is supporting the project through the local portion of the brownfield work plan valued at $4.24 million and the city has offered an Industrial Facilities Tax abatement valued at up to $7.68 million.

Mayor of Detroit, Mike Duggan, said: “Fortescue’s decision to locate in Detroit to develop its new Advanced Manufacturing Center adds to our city’s momentum in attracting sustainability and clean energy investments and the good-paying jobs they bring.

“It also is another major piece of the revitalization taking place on this stretch of Piquette Street, along with the redevelopment of the Fisher Body 21 and Studebaker plants into hundreds of units of new mixed-income housing. We are grateful to the Michigan Strategic Fund for its support of this project.”

The new Fortescue site was originally constructed in 1920 as Fisher Body 23. It has 410,000 sq ft of space over six floors on 14 acres.