Electric Vehicles Need Batteries. Battery Plants Need (Cheap) Electricity

By Gary S. Vasilash

One of the key things needed for an electric vehicle is—surprise, surprise—batteries.

One of the things that OEMs are doing is not simply depending on suppliers to build the battery plants, but, in efforts to better control their supply chains, participating in the build of the factories with suppliers, such as GM and LG in Ohio and Ford and SK Innovation in Tennessee.

Ford’s $5.6 billion mega campus, BlueOval City, is not being built in Michigan. It will go up in Tennessee. One reason: electricity is cheaper there. (Image: Ford)

While GM and Ford are both headquartered in Michigan, they’ve not picked Michigan as a place to build a battery plant.

So, reports Bridge Michigan, on Wednesday the Michigan Public Service Commission voted to do something that could help make the state more appealing, and not just to the home-state OEMs:

Allow utility companies to offer industrial customers a reduced rate for electricity.

Presently industrial customers in Michigan pay 7.85 cents per kilowatt hour. Just across the border in Ohio the rate is 6.85 cents.

And for companies operating battery plants or semiconductor fabs, those pennies add up. Fast.

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