Crain’s Detroit Business
March 28, 2023
Kurt Nagl
Auburn Hills-based BorgWarner Inc. plans to invest $20.6 million and add 186 jobs in metro Detroit as the automotive supplier accelerates its electric vehicle business.
BorgWarner is looking to set up new EV labs, scale up manufacturing of its DC fast chargers and increase output of battery packs, according to a briefing memo from the Michigan Economic Development Corp., whose Michigan Strategic Fund board on Tuesday approved a $1.86 million performance-based grant for the project.
The following investments are planned:
- Auburn Hills: The company will invest $5 million in BorgWarner Propulsion Systems LLC for new EV labs and test equipment, as well as R&D of energy storage, charging and micro-grid control and operations.
- Dearborn: BorgWarner will invest $5 million in subsidiary Rhombus Energy Solutions Inc. for scaled-up production of EV chargers.
- Hazel Park: The company will expand production of EV packs through recently acquired subsidiary Akasol Inc., which operates a plant in Hazel Park.
- Additionally, BorgWarner is looking to open a new 100,000-square-foot plant to serve as an EV battery module and pack service center, and Warren is on the short list of cities in consideration.
The jobs are expected to pay an average of $1,242 per week plus benefits.
“While the company is attracted to expanding in Michigan due to the synergy and ease of collaboration it would create with its North American headquarters being located in Auburn Hills, incentive assistance is necessary to ensure the project moves forward in Michigan,” the MEDC memo said.
BorgWarner indicated late last year it was planning to expand its U.S. manufacturing footprint to handle its fast-growing electrification business, expected to generate about $4 billion by 2025.