DETROIT — Despite President Donald Trump’s critical stance on the electric vehicle (EV) sector this week, there remains a sense of optimism regarding the industry’s trajectory in Michigan. This state is evolving from a longstanding traditional auto hub to a leading destination for electric vehicle investments.
Recent data reveals that over $27 billion is being invested in approximately 60 EV manufacturing and battery projects in Michigan, outpacing Georgia’s $26.6 billion. This trend suggests that the birthplace of the modern automotive industry is still pivotal to both its current operations and future developments.
Michigan hosts numerous supply chain companies alongside major automakers. A highlight in this transformation is Factory ZERO, where General Motors has revamped an assembly plant in Hamtramck to produce electric Hummers and Silverados, situated on a site rich in automotive history. Additionally, a $1.6 billion battery manufacturing facility in Van Buren Township is expected to generate over 2,100 employment opportunities and produce about 200,000 EV battery packs annually once it becomes fully operational.
Another notable development is the upscale building located in Detroit’s Corktown neighborhood, adjacent to the restored Michigan Central train station, which now houses Newlab. This innovation space allows entrepreneurs to explore high-tech equipment, network with peers, and collaborate with automakers.
Eric Frehsée, an auto dealer, expressed confidence in the industry’s direction, despite the administration’s shifting policies. He is reconfiguring Tamaroff Auto Group in Metro Detroit to embrace electric vehicles, investing in equipment like forklifts for heavy batteries, training technicians for EV maintenance, and installing electric chargers. He represents brands such as Nissan, Honda, Acura, and Kia, each offering electric models.
On the east side of Detroit, Ray Smith operates an EV training program for future automotive technicians at Blast Detroit, where aspiring apprentices learn to diagnose EV systems and contrast them with traditional gasoline vehicles. “Regardless of federal policy shifts, we must continue to advance,” said Smith.
Earlier this week, the President signed an executive order that aims to dismantle an EV “mandate,” referencing President Joe Biden’s goal for half of new vehicle sales in the U.S. to be electric by 2030, alongside planned cuts to greenhouse gas emissions from vehicles. These policies were not compulsory for automakers to generate electric vehicles or for consumers to purchase them.
Trump’s order suggests a potential rollback of these pollution regulations. It may also involve the end of a $7,500 tax incentive for new EV purchases, alongside a halt to billions allocated for EV charging infrastructure. In reaction, Stellantis, the maker of Jeep and Ram, affirmed it is prepared to adapt to policy changes introduced by the new administration, expressing a willingness to collaborate with the president. Ford declined to make any statements, and there was no comment from a GM spokesperson.
The electric vehicle sector has faced challenges, with some manufacturers reconsidering their electric initiatives. While EVs comprised 8.1% of new vehicle sales in the U.S. in 2024, growth in sales has decelerated compared to the previous year, according to industry data. Although EVs are becoming more affordable, they still generally have a higher upfront cost than gasoline-powered vehicles.
Bruce Westlake, president of the nonprofit Eastern Michigan Electric Automobile Association, noted that consumers are seeking environmentally friendly options. However, this enthusiasm may diminish if federal backing for EVs and clean energy starts to wane. “U.S. automakers might find themselves producing vehicles not aligned with market demand,” Westlake added, warning that it could compromise their future development in the EV sector.
In another corner of Detroit, Plug Zen concentrates on EV charging solutions for businesses with vehicle fleets. The company has plans to install chargers at workplaces and multi-family housing complexes, where obtaining charging access can often be a challenge. CEO Q Johnson expressed a cautious optimism towards Michigan’s EV future, stating he does not anticipate a radical redirection for the industry. “We are committed to ensuring we stay competitive,” he remarked.
