Norway-based Nel has selected Plymouth Charter Township, a suburb of Detroit, Michigan, as the location for its next gigafactory. Fully developed, the factory will be among the world’s largest electrode manufacturing facilities, with a total annual capacity of 4 GW Alkaline and PEM technology.

Plymouth Charter Township is an ideal location for Nel. Here, we have access to a highly educated workforce, universities and research institutions, and we are close to our collaborating partner, General Motors. In addition, the Government and the authorities of Michigan have provided a very attractive financial support package for us.

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The Michigan Strategic Fund (MSF) has decided to support the project with a US$10-million Michigan Business Development grant. The MSF board also approved a 15-year, 100% State Essential Services Assessment (SESA) Exemption Request, valued at up to US$6.25 million to support the project. Nel has so far secured more than US$50 million in support for its Michigan site. Pending approval of additional state and federal applications, this amount could increase to around US$150 million.

The manufacturing facility in Plymouth will build on Nel’s fully automated electrolyzer concept, which the company has developed at its production facility in Herøya, Norway. Similarly, the company’s expansion of the facility in Wallingford will play a critical role in creating a blueprint for scaling up the production of Nel’s PEM electrolyzers.

The factory will be built in steps to match supply with demand. A final investment decision for constructing this facility has not been made yet.