A unit of powertain supplier Dana Inc. plans to open a $54.2 million electric vehicle battery cooling plant in suburban Detroit that would create 200 new jobs.
Dana Thermal Products LLC plans to lease space in a 350,000-square-foot building in Auburn Hills, Mich., where it will manufacture battery cooling plates designed to extract heat from lithium-ion battery cells, according to a briefing memo from the Michigan Economic Development Corp.
The company anticipates production beginning in 2023 with all 200 of the jobs to be created by the end of 2024 at the site.
The project is being supported by a $2.5 million business development grant from the state following approval Tuesday by the Michigan Strategic Fund.
The incentive is a “critical factor” in swaying the supplier to choose Michigan over alternative sites in the southeast U.S. and Canada, according to state officials.
“In addition to an experienced and strong local labor pool in the alternative locations, operating cost structures in the alternative locations are favorable,” the MEDC memo said.
The company said its investment would include $4 million of leasehold improvements to upfit the space and $40 million of equipment including brazing, stamping and post-powder coating lines.
Parent company Dana, which supplies driveline and e-propulsion systems, was awarded a $1.5 million business development grant from the state last February for a $9 million EV center in Novi.
Dana, based in Maumee, Ohio, ranks No. 28 on the Automotive News list of the top 100 global suppliers with worldwide sales to automaker of $8.9 billion in 2021.