EV speedbumps imperil projects: Less than anticipated demand for electric vehicles saps Michigan's battery manufacturing plans.

PRODUCTION planning; CONSUMER behavior; BATTERY storage plants; ELECTRIC vehicle industry; ECONOMIC development projects; ELECTRIC vehicles; ELECTRIC vehicle batteries

Michigan has invested $5 billion in incentives for electric vehicle (EV) and EV battery plants, but the demand for EVs has been lower than anticipated, leading to uncertainty for these projects. The high cost of EVs compared to gas-powered vehicles is a major challenge, as mass adoption won't happen until prices come down. Despite this setback, Michigan is still aggressively pursuing projects in the EV and mobility space. The state has committed nearly $5 billion in incentives since 2021, but there are concerns about the return on investment and whether Michigan will get its money's worth. [Extracted from the article]

Copyright of Crain's Detroit Business is the property of Crain Communications Inc. (MI) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)