The following commentary was written by Mel Mackinm, director of state policy at Ceres, a nonprofit that works with investors and companies to advance clean energy policy. See our commentary guidelines for more information.
Look out across Michigan and you’ll see groundbreakings for major solar panel manufacturing sites, huge investments to build battery cells, and sparkling new facilities to ensure the state stays in the driver’s seat as the auto industry moves into the future.
It seems Michigan manufacturing is having a moment.
It’s little wonder why. Michigan has always had the legacy, the workforce, the supply chains, and the know-how to serve as the epicenter of an American manufacturing renaissance. That’s exactly what’s happened since Congress finalized the nation’s largest-ever clean energy investment in the summer of 2022.
Powered by incentives for companies to manufacture and deploy clean energy infrastructure and technology here in the U.S., the Inflation Reduction Act has unlocked more than $360 billion in private-sector investment in less than two years, according to research from Climate Power. Its impact has been felt in every corner of the country with hundreds of new projects taking shape to build innovative technologies, employ hundreds of thousands of workers, and power the economy – all while cutting costs and pollution. But no other state has seen as much activity as Michigan, the site of 58 new clean energy projects.
Michigan policymakers deserve some credit for moving quickly to take full advantage of this opportunity. In 2022, Gov. Gretchen Whitmer made clear in her MI Healthy Climate Plan that she wanted to make Michigan one of the best places in the world to build and deploy clean energy. Lawmakers since followed her lead with legislation that will move the state to 100% clean electricity by 2040 and ensure clean power infrastructure can be built both quickly and responsibly – a pair of laws that boasted ample support from Michigan companies that recognize confronting climate change is also an economic opportunity.
These policies were designed to fully harness the Inflation Reduction Act, making clear that the state is ready to support the growing number of businesses that supply or rely on innovative clean technology. In response, businesses that include classic Michigan manufacturers like GM, global brands like Corning, and upstarts like Lucid Motors have flooded the state with more than $21.5 billion in new clean energy innovation and manufacturing investment, creating some 20,100 new jobs.
With projects located from Detroit to Holland to Traverse City, so much of the state is already benefitting. That includes communities that have so far been left behind in the 21st century economy. About half of the state’s recent clean energy investment is located in rural or low-income areas, such as Norm Fasteners’ $77 million facility that will create 200 electric vehicle supply chain jobs in Bath Charter Township.
Now is not the time to slow down. We are now in the throes of the 2024 election, and we all know Michigan has been getting a lot of attention. No matter what happens in November, Michigan and the U.S. must continue investing in this revamped manufacturing base. Policymakers on both sides of the aisle have prioritized rebuilding American industry to provide good jobs and bolster U.S. leadership
Michigan’s clean energy manufacturing boom provides clear evidence that this shared goal is coming to fruition. Policymakers at both the federal and state levels, along with leaders in the private sector, must maintain this momentum and the strong policy environment that will allow the U.S. and its workforce to lead the global economy in the emerging industries of the future – with Michigan, as it so often has, standing strong as the foundation.
Commentary: Michigan is the epicenter of America’s clean energy manufacturing renaissance is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.
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