Ford's EV battery plant in Michigan stirs debate between agriculture and manufacturing

MARSHALL, Mich. — With site preparations underway for Ford Motor Co.'s massive electric vehicle battery plant in rural Marshall, local farmers and residents worry about the impact on their businesses and environment.

What is the cost to farms and the environment when industrial production moves into a small community?

That is the question many in and around Marshall have been asking as debates about impact and loss of agricultural land have raged since Ford announced it would build a lithium iron phosphate battery plant in Calhoun County, despite the promise of 2,500 new jobs.

Though BlueOval Battery Park will not open until 2026, debates over the costs and benefits of the $3.5 billion project near the intersection of I-94 and I-69 have been ongoing for months, with Marshall's agricultural sector at the heart of the conflict.

The community has been promised a "transformational" influx of jobs that supporters believe will help heal the wounds of population and job loss in recent years. Some farmers and other stewards of the land, however, are concerned about the impact on the local agricultural economy. Before the Ford plan, the land that will be used for BlueOval was primarily zoned as light industrial, and a smaller portion was agricultural. Marshall City Council voted 6-0 to grant industrial zoning designation to about 740 acres at the heart of the Ford development.

An opposition group called Committee for Marshall – Not Megasite hopes to stop the development on 950 acres of a 1,900-acre parcel. After an unsuccessful effort by the group seeking a referendum vote on the rezoning decision, the organization sued the city and its city clerk in hopes of stopping construction, according to Calhoun County Circuit Court documents. In the lawsuit, filed June 27, the group argues the city's rejection of the referendum petition was unconstitutional.

David Bosserd, Marshall Township supervisor and owner of Bosserd Family Farm in Marshall, is fearful a balance between jobs and environment will not be struck. The farm has been in his family since 1932 and Bosserd was the lone member of the township board of trustees to vote against transferring the site land to the city.

Of primary concern is being "boxed in" by industrialization, Bosserd said. Many acres of "good farmland" allocated for the site will not be farmed in the future. The industrial use of fertile land has been criticized by farmers throughout the area, with many lamenting the forfeiture of soil they consider a precious resource and crucial to their livelihoods.

The loss of the land will put pressure on local farmers who will now have to go farther to find new "farm ground to be able to sustain (their) operations," Bosserd said. Competition will also increase between farmers as a result.

"As you fragment agriculture, it makes it harder for it to survive," he added. "You increase the traffic because we have to move equipment down the road. And there has to be a certain size to a farm for it to be able to sustain itself."

The potential strain has pushed Bosserd to ask himself if the Ford plant is a good deal for his community. He is hopeful the project will be beneficial but believes answering this question positively will require the city and the automaker to listen to community concerns.

Ford is committed to doing just that, said spokesperson Melissa Miller.

"(Ford) will continue to engage with the local community, listening and sharing updates, by hosting and attending community events and meetings," Miller said. "As well as smaller conversations with residents, environmental groups, businesses, nonprofit agencies and civic leaders."

Pollution from the plant is another key fear of Bosserd and others, as the plant site is situated near the bank of the Kalamazoo River, an important watershed for the region.

Farmers "live on the land that we farm," he emphasized. "Protecting the water is very important to me."

Victoria McGuffin, a professor of chemistry at Michigan State University and a resident of Marshall, has also been outspoken about her concerns. She is not opposed to the battery plant itself, but fears the location could threaten "surface water, groundwater and private and public water supplies."

The Kalamazoo River is a "vulnerable" watershed, McGuffin said, due to an Enbridge Inc. pipeline burst in 2010 that released an estimated 843,000 gallons of heavy crude oil into the river. Restoration took more than four years and "the river is still recovering," she added.

A major manufacturing plant poses a threat to this recovery, McGuffin argues. One concern is the use of asphalt, which contains the same pollutant that was released in the original spill, she explained, to pave parking lots and roadways at the plant.

"Every time there is rain, snow or other precipitation, (the pollutants) are leached from the asphalt," McGuffin said. "As the site is on a flood plain within the watershed, the water containing the (pollutants) will flow on the soil surface down toward the river."

In response to these concerns, Miller said, "all stormwater runoff will go to an on-site detention basin to help protect the river."

Related to the production of lithium iron phosphate batteries on the site, McGuffin is concerned about the leakage of lithium ion into the water supply. The pollutant could have significant health consequences and is difficult to remove from water supplies, she added.

Ford plans to direct sanitary and process water used at the plant to the city of Marshall's wastewater treatment plant, Miller said.

"Ford is committed to being a good neighbor and to protecting the Kalamazoo River," Miller emphasized.

There will be 245 acres maintained as green space between the EV battery plant and the river to act as a buffer to protect the river as a part of a conservation easement that Ford has agreed to, said James Durian, CEO of Choose Marshall/Marshall Area Economic Development Alliance. His organization helped assemble the parcels and market the megasite.

Based on environmental modeling, McGuffin believes this will not be enough to stop the potential flow of pollutants to the river.

Also adjacent to the Ford parcel is a piece of land known as Bear Creek, which Durian said MAEDA hopes to preserve as a historical site and nature center, although that is still being decided.

As construction on the site seems increasingly likely to move forward to Bosserd, he is encouraging his neighbors to test their water to measure the baseline quality.

"Ford has a lot of responsibility here in this community now," he said.

Marshall has lost roughly 2,000 jobs over the past 20 years, while its population remains relatively unchanged at 6,822 in 2020, the Battle Creek Enquirer reported. It is estimated the battery plant will create 2,500 new jobs in the community. In return, the state and local entities are set to invest $1.7 billion in infrastructure grants and tax abatements in the project, with significant aid allocated for local road expansion and upgrades in water infrastructure.

The creation of jobs will boost the local economy and it is projected that the project will generate up to $1.57 billion in state tax revenue, Durian told Crain's.

"It means more funding for public schools, more vibrancy in the community," he said. "There will be more community wealth and all of those things are good whether you're a farmer or not."

Creating jobs in rural communities will be key for Michigan's agricultural sector, said Chuck Lippstreu, president of the Michigan Agri-business Association. In a time when major agricultural producers, such as California, have been hindered by drought, Lippstreu sees water-rich Michigan as poised for growth. That potential, however, is hindered by population loss in rural communities.

"If we bring people into the communities, they build a life and a home and that has a broader positive impact on the ability of all employers to hire people," Lippstreu said. "That has a downstream benefit effect on agriculture long term, especially at a time when agriculture is in a stark labor shortage."

Since the COVID-19 pandemic began in early 2020, Michigan has experienced a yearslong labor shortage across a variety of industries. Lippstreu said that "stark" labor situation necessitates intervention.

"We need our state government to be innovative, to be creative, and frankly, to do all that it can to go out and identify, recruit and bring new employment opportunities to our state," he said.

To have the desired economic impacts, though, Lippstreu said the community and Ford need to demonstrate a long-term commitment to the partnership.

"We have to be sure that we're thoughtful about the economic development coming into our state. And at the same time, we need to be realistic about the challenges facing agriculture and facing Michigan," Lippstreu said. "It's a tough balance, but it's one that we can meet."

This article was originally published by Automotive News affiliate Crain's Detroit Business.