Ford project megasite in Michigan wins $120M state grant

State economic officials approved Tuesday a $120.3 million grant for site readiness at a megasite in Marshall, Mich., where Ford Motor Co. is building a $3.5 billion battery factory.

The Michigan Strategic Fund board's approval of the Strategic Site Readiness Program funding represents the latest chunk of an expected $1.7 billion in incentives and tax breaks supporting the project.

The grant was approved by state legislators and is part of the Strategic Outreach and Attraction Reserve Fund.

The money is being distributed to the Marshall Area Economic Development Alliance, which is administering the funds for site prep work, such as demolition and grading, as well as for acquiring additional property at the Calhoun County site.

While the battery plant will take up 950 acres, the MAEDA has closed on 1,500 acres and has most of the rest of the 1,900-acre megasite under option, according to Jim Durian, CEO of the agency.

The site is expected to lure additional companies beyond Ford, Michigan Economic Development Corp. CEO Quentin Messer said on a call with reporters.

"An entire ecosystem focused on the battery component of this could be created," Messer said. "The thought process is there will be other opportunities for us to compete for those other elements of the value chain related to the battery industry."

Work is ramping up on Ford's lithium iron phosphate battery plant with Chinese giant Contemporary Amperex Technology Co., which promises to create 2,500 jobs and secure Michigan a spot in the automotive future, according to officials.

The project has not been without opposition from some locals, who are wary of the impact on the environment and general way of life for the small town. The state has also been criticized for its massive incentives package.