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Gov. Whitmer Awards Grant to Rebuild Haggerty Road to Support Our Next Energy’s Historic Expansion, Creating More Than 2,000 Jobs
December 15, 2022
FOR IMMEDIATE RELEASE
December 15, 2022
Gov. Whitmer Awards Grant to Rebuild Haggerty Road to Support Our Next Energy’s Historic Expansion, Creating More Than 2,000 jobs
LANSING, Mich. - Today, Governor Gretchen Whitmer announced a major rebuild of Haggerty Road in Van Buren Township in Wayne County to support the construction of Our Next Energy’s (ONE) new gigafactory and ensure reliable delivery of their goods. This announcement builds on state support announced in October to further support the company’s growth in Michigan, which is expected to create 2,112 new jobs and $1.6 billion of investment in the economy.
"Investments in our roads and bridges help Michiganders go to work, drop their kids off at school, and run errands safely," said Governor Whitmer. "Since I took office through the end of this year, Michigan will have fixed 16,000 lane miles of road and 1,200 bridges, bolstering our economy and connecting our hardworking communities. With today's grants, we are investing in Michigan communities and making Michigan more competitive. I will work with anyone to advance our economic development and build a Michigan where everyone can envision a bright future for themselves."
ONE is a Novi-based battery storage company that uses safe, sustainable, low-cost battery chemistries for consumer and commercial electric vehicles. The company has developed sustainable battery manufacturing practices of both lithium iron phosphate (LFP) and anode-free cells and plans to bring this technology to the global market by establishing its first cell and electric vehicle (EV) battery pack gigafactory. To accommodate this new business, ONE began searching for a manufacturing facility and discussing the possibility of occupying a building at Crossroads Distribution Center in Van Buren Township. A significant issue with this site is that Haggerty Road at this location is in extremely poor condition, not suitable for existing traffic, and would not be able to accommodate the increased traffic generated by ONE’s development.
Wayne County and Van Buren Township pledged to work to obtain funding through the MDOT TEDF to rebuild the road. The $3.5 million grant is funded through the Transportation Economonic Development Fund (TEDF). With this assurance, ONE committed to invest more than $1.6 billion to house their 659,589-square-foot cell manufacturing gigafactory at Crossroads Distribution Center. Michigan was chosen for the project over competing sites in the U.S. and Canada. The project is expected to create 2,112 skilled engineering, manufacturing, and operational jobs by 2025.
"The deployment of this grant represents months of collaboration between multiple levels and government alongside the private sector. Improving Michigan’s roads has been a hallmark of accelerating the state's economic growth and facilitating investment from industry leaders like ONE," said Dr. Deeana Ahmed, vice president of Strategy, Policy, and Sustainability at ONE. "The administration has an excellent record of leadership in understanding the vital connection between infrastructure funding and private development. ONE is proud to call Ashley Capital, Van Buren Township, Wayne County, and MDOT partners in our efforts to launch our inaugural factory and deliver thousands of good-paying jobs to Michiganders."
While improvements to Haggerty Road were crucial for ONE’s decision, road improvements will serve as an asset for the area and for future economic development efforts. "Ashley Capital is excited to partner with MDOT, Wayne County, and Van Buren Township to see Haggerty Road upgraded. Haggerty Road is the backbone of the industrial market in the area and the planned improvements to Haggerty Road were integral in landing ONE as a tenant at Crossroads Distribution Center," said Kyle Morton, Ashley Capital.
"ONE hopes to bring a transformative, clean manufacturing project with more than 2,000 new jobs to Van Buren Township, along with suppliers and visitors from around the world, but the success of this project hinges on safe and reliable access to and from Haggerty Road," said Dan Power, director of Planning and Economic Development for Van Buren Township. "Creating a new primary access point at Haggerty Road will be vital for the site. The road's current condition threatens delays, disruption, and uncertainty. The reconstruction and widening of Haggerty Road from Ecorse Road to Van Born Road is therefore critical, both for ONE's successful launch today and for the Haggerty Road corridor to continue to serve Van Buren Township and southeast Michigan as an economic growth engine in the future."
Wayne County Department of Public Services, in cooperation with Van Buren Township, will rebuild Haggerty Road from Ecorse Road to Van Born Road. Work includes demolishing the existing roadway and replacing it with new concrete roadway. The project will add a center left-turn lane and right-turn lanes at new and existing driveways, excluding intersections, and include curb and gutter work throughout the project limits. Non-participating work in the project includes the installation of a new traffic signal midway on Haggerty Road at a newly built service drive to the Crossroads Distribution Center Building #6, enclosing drainage structures, the addition of underdrains, and water main work.
"Wayne County is at the core of the country's automotive industry and the development of electric vehicles. This extraordinary investment in the new battery plant demonstrates why we're the preferred location for companies who wish to drive the automotive supply chain into the future," said Wayne County Executive Warren C. Evans. "We appreciate the support from Gov. Whitmer and MDOT in providing this grant to help us ensure the new plant will be ready in time for ONE to begin operation."
"MDOT came through for the region in a big way. We all pulled together to revise the site plan, which required upgrading roads to accommodate this new energy economy project!" said Christopher Girdwood, CEO of Detroit Region Aerotropolis Development Corp.
This support comes on the heels of Governor Whitmer attending a ribbon-cutting ceremony and tour of ONE’s new global headquarters in Novi this fall, where the company is developing products to be manufactured at ONE Circle in Van Buren Township.
The state TEDF grant helps finance public highway, road, and street projects that are critical to the movement of people and products, and getting workers to their jobs, materials to growers and manufacturers, and finished goods to consumers. The total project cost for rebuilding Haggerty Road is estimated at $8.8 million. TEDF Category A grant program will provide a grant of $3.5 million toward eligible construction costs and Wayne County is providing $5.4 million in a combination of grant match and non-participating work associated with the project.
About Transportation Economic Development Fund Grants
Enacted in 1987 and reauthorized in 1993, TEDF "Category A," or "Targeted Industries Program," grants provide state funding for public roadway improvements that allow road agencies to respond quickly to the transportation needs of expanding companies and eliminate inadequate roadways as an obstacle to private investment and job creation. Eligible road agencies include MDOT, county road commissions, cities, and villages. More information about the program is available online at www.Michigan.gov/TEDF.