Charging Ahead: Ann Arbor's Rise in the EV Battery Industry

From the Model T to electric trucks, Michigan has always been ground zero for the world’s top automotive innovations. 

Now, as more and more car manufacturers go electric, with electric vehicles potentially making up nearly half of global car sales by 2035, there’s a huge surge in battery development. Not only is it reshaping the local economy, but it’s also positioning the region as leaders in the automotive industry's electric revolution.

Once known as the “Rust Belt”, Michigan is now emerging as the “Battery Belt” with new economic investments from the state and private companies into battery development. A report from CNBC claims that by 2030 Michigan will dominate battery production. Currently, Michigan accounts for approximately one-third of all battery production in the country, a testament to the state's commitment to embracing the future of mobility.

While Detroit has long been dubbed The Motor City, Ann Arbor is also playing a vital role in the mobility ecosystem. 

From Motor City to Battery Belt

The high concentration of automotive expertise in Southeast Michigan has provided a solid foundation for battery development growth. With 96 of the top 100 automotive suppliers based in Michigan and 26 original equipment manufacturers (OEMs) maintaining headquarters or technology centers in the state, the ecosystem for battery innovation and production is robust and interconnected.

With the headquarters of Ford Motor Company, General Motors, and Stellantis within 60 miles of Ann Arbor, the region is becoming a hotbed for mobility innovation. Toyota, Hyundai, Honda, Subaru, Mercedes, and Mitsubishi all have an Ann Arbor presence as well. At the American Center for Mobility in Ypsilanti, much of the research and development is focused on testing EV charging. 

The greater Ann Arbor ecosystem is rife with out-of-the box thinkers, advanced research, abundant financial resources, a vibrant economic development initiative, and an immense talent pool. 

R&D: Driving Innovation

As a whole, Michigan ranks #5 in the nation for research and development investment. In Ann Arbor, many organizations make it the place to be for EV and battery innovation. 

The University of Michigan (U-M) stands as a cornerstone of battery and EV research in the region. The university's various research centers and initiatives are pushing the boundaries of what's possible in electric mobility.

Mcity, a 32-acre controlled environment on the U-M campus, serves as a testing ground for autonomous and connected vehicles. Researchers here test battery performance and charging systems in a variety of simulated real-world conditions. 

Image source: MCity X account

The University of Michigan Transportation Research Institute (UMTRI) is another key player in the region's research landscape. With an annual research expenditure of $20 million, UMTRI has conducted over 1,000 research projects, generating hundreds of terabytes of data to advance safe, equitable, and efficient transportation and mobility.

Many mobility projects have been catalyzed by Ann Arbor SPARK, a nonprofit economic development organization that ignites innovation and growth in Southeast Michigan. Ann Arbor SPARK has facilitated conversations and helped leverage grants to advance pilot developments between startups, industry, academia, and the public sector. Many of the companies SPARK works with — such as Niftgo, Surge Mobility, Thought Labs, Arbor Batteries, and ESSPI — will be on display at SPARK’s booth at the upcoming Battery Show in Detroit, October 7-10.

Investing in the Future

In Ann Arbor, recent investments underscore the region's growing importance in the battery industry. Toyota North America's $47.7 million investment in its York Township facility stands out as a prime example. This expansion in Washtenaw County includes the addition of a state-of-the-art battery testing facility, which will enhance Toyota's capabilities in battery cell, module, and pack testing. The company estimates that approximately 30 existing full-time employees, including engineers and technicians, will be retrained to support the transition from internal combustion engines to electric vehicles.

Toyota North America

Hyundai is also investing in Washtenaw County. The company opened a world-class Safety Test and Investigation Laboratory in Superior Township. This facility, the first of its kind by an OEM in North America dedicated to field safety, includes a high voltage battery lab among its cutting-edge features. The investment highlights the increasing focus on safety and performance in EV battery technology.

To meet the demand of future mobility innovation, the region is also investing in workforce development. In addition to U-M, programs like Washtenaw Community College Advanced Transportation Center and Eastern Michigan’s College of Engineering are providing education and training for high-skill mobility careers that are already in high-demand.

The Road Ahead

As the battery industry in Ann Arbor continues to grow, so too does the supporting infrastructure. The region boasts over 500 miles of roadway equipped for connected vehicle testing, and plans are underway for a new 40-mile connected and autonomous vehicle (CAV) corridor project. With its high concentration of mobility talent and opportunities, Southeast Michigan is cementing its position as a leader in battery innovation and production.

The implications for the region's economy and the broader automotive industry are significant. With a combination of strategic investments, cutting-edge research, and a supportive ecosystem, Ann Arbor is not just participating in the electric revolution — it's helping to drive it.

Learn more about getting connected to Ann Arbor’s mobility sector through Ann Arbor SPARK.