Michigan Delivers on Federal Funding for Battery and Chip Manufacturers

Michigan grows programs and marks wins in bringing federal funding home to expand semiconductor and battery pack manufacturing

It’s never been clearer that the key to business success is to make it in Michigan than with the announcement of the Battery and Advanced Manufacturing Challenge and the Department of Energy’s (DOE) support to expand semiconductor chip and battery pack manufacturing. 

The Battery and Advanced Manufacturing Challenge is a $125 million strategic investment from the Make it in Michigan Competitiveness Fund that offers matching grant dollars for battery and advanced manufacturing projects to help bring federal infrastructure in transformative projects to Michigan. 

The Challenge is part of the state’s plan to continue winning federal support for Michigan businesses, as seen in the announcement that the DOE has made conditional commitments for loans to expand the manufacturing of semiconductor chips at SK Siltron CSS and advanced battery packs at American Battery Solutions (ABS). 

Securing Federal Infrastructure Investment in Michigan  

The Challenge helps companies leverage federal funding through the CHIPS Act, Inflation Reduction Act and Bipartisan Infrastructure Law. Companies can apply for funding under the Challenge by visiting the Make It in Michigan Competition Fund website, which is now accepting applications. 

“Thanks to President Biden and our Congressional delegation’s efforts, we can compete for and win federal funding from the Inflation Reduction Act, the CHIPS Act and the Bipartisan Infrastructure Law to bring supply chains home, create good-paying, middle-class jobs and lead the future of critical industries,” said Gov. Gretchen Whitmer. “With this Challenge, our economic development toolkit, and our emerging ecosystem of advanced manufacturing, Michigan will keep competing and winning.”  

These grant dollars are another step in Michigan’s charge to lead the nation in clean energy investments and jobs. The 2023 Clean Jobs America Report stated that clean energy businesses in Michigan added more than 5,400 workers in 2022 and now employ nearly 124,000 Michiganders. The state has secured nearly $1.3 billion in federal funding to support clean energy initiatives, including lowering energy costs, reducing power outages and creating thousands of new jobs. 

To continue Michigan’s forward momentum, the State enacted legislation that makes Michigan one of the most aggressive pursuers of clean energy, committing to a 100% clean energy standard, streamlining construction of energy projects and lowering utility costs. 

Focusing Federal Support for Semiconductor and Energy Storage 

The Challenge’s launch came on the heels of the DOE’s announcement of support to expand American manufacturing of semiconductor chips at SK Siltron CSS in Bay City and advanced battery packs at ABS in Lake Orion, creating up to 660 jobs. 

"Team Michigan is grateful to the Biden-Harris Administration for continuing to support advanced manufacturing in the US. We are proud to be a state that not only creates the ideas but also possesses the know-how and grit to make stuff. These successes arise from Team Michigan’s dedication to growth and innovation and implementing legislatively designed economic development tools,” said MEDC CEO Quentin L. Messer, Jr. “Through the ‘Make It in Michigan’ economic development strategy, Michigan remains on the map for companies as the leading state in electric vehicles, energy storage systems and semiconductors, and Team Michigan remains steadfast in continuing the work of helping our fellow Michiganders and the businesses who employ them across both peninsulas.”  

The DOE’s conditional commitment for a $544 million loan will help SK Siltron CSS expand manufacturing of critical wafers that are essential to electric vehicle electronics. If finalized, the project is expected to create up to 200 construction jobs in the build-out phase and up to 200 skilled, good-paying operations jobs at full production. 

This project builds on SK Siltron CSS’s success in Michigan, bolstering the state’s leadership in advanced manufacturing within the semiconductor field by cutting the ribbon on its $300 million manufacturing facility in Bay City in 2022. 

The facility expanded production of much-needed silicon carbide wafers, considered the future of the industry because of their ability to efficiently transfer energy. The company selected Michigan for its facility over competing states because of its skilled workforce and proximity to automakers. 

To further ensure the future of semiconductors lives in Michigan, SK Siltron CSS has partnered with Delta College, Hemlock Semiconductor and the Michigan Economic Development Corporation to support state-of-the-art training programs that respond to Michigan’s increased demand for skilled technicians and engineering professionals in the semiconductor industry. 

The DOE also announced a conditional commitment for a $165 million loan for ABS to expand an assembly facility to supply next-generation battery packs that cut carbon emissions and boost the efficiency of electric vehicles. The project would create and support 460 high-skilled, good-paying jobs when finalized. ABS opened its lithium-ion battery manufacturing facility in Lake Orion in 2021, creating more than 100 good-paying jobs. 

Michigan is the Best Place to Do Business 

This track record of successful business support and expanded electrification and semiconductor ecosystems showcases Michigan’s ability to focus federal spending into real opportunity. Learn more about why Michigan is the premier place to do business. 

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