The Mississippi Legislature on Thursday gave broad bipartisan approval to state incentives for factories that make electric vehicle batteries. The project promises to create 2,000 jobs with an average salary of about $66,000.
After lawmakers voted, Republican Gov. Tate Reeves named the four companies involved. Heavy-duty truck manufacturers Cummins Axelera, Daimler Trucks and PACCAR will each own 30% of the project. China-based lithium battery manufacturer EVE Energy Co., Ltd. will take a 10% stake.
The companies plan to invest about $1.9 billion in the plant in Marshall County near the Tennessee border, which Reeves said would be the second-largest corporate investment in Mississippi's history.
Gov. Reeves takes oath for second term after overwhelming election victory in deep-red Mississippi
“For too long, technology has been developed in the United States, that technology has been brought to China, and it has been manufactured in China,” Reeves said at a news conference at the state Capitol. “The reality is we need to bring jobs back to America.”
Production of EV batteries in the United States is accelerating as automakers shift to electric vehicles. The Inflation Control Act provides a $7,500 tax credit to consumers who purchase EVs, but only if the vehicle and battery are assembled in North America and contain minerals mined or processed domestically. It will be done.
Republican Rep. Trey Lamar of Senatobia, chairman of the state House Ways and Means Committee, said the U.S. Treasury Department needs to approve the Mississippi factory plan.
Mississippi Governor Tate Reeves (center) presents incentives for a Mississippi factory that will make electric vehicle batteries and create 2,000 jobs at the Mississippi State Capitol on January 18, 2024 in Jackson, Mississippi. We applaud the passage of the package. (AP Photo/Rogelio V. Solis)
“We live in a global economy,” Lamar said during a special session of Congress Thursday. “The fact that we have companies that are willing to invest from outside the United States and provide jobs to Americans is a good thing.”
The total amount of state incentives is approximately $365 million, which includes land development costs for the Chickasaw Trails Industrial Park.
The House rejected two proposals by Democratic Rep. Robert Johnson of Natchez. One would require the plant to hire 70 percent of its workforce from Mississippi, and the other would require the plant to invest in other projects that would benefit Marshall County.
Even though Democrats voted in favor of the incentives, the party's legislative leaders criticized Republican leaders for forcing the agreement through a one-day special session. He also said the state has only advanced economic development projects in areas represented by Republicans.
Reeves thanked Republican Sen. Roger Wicker for helping Mississippi win over other states.
“It was a huge challenge to cut through the red tape, but it was worth the fight knowing it would change the lives of thousands of people,” Wicker said in a statement. “This project is an investment in our people and proof that our country is worth investing in.”
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If the plant goes ahead, it will join a growing list of similar facilities being built across the country.
Ford is building EV battery factories in Kentucky and Tennessee through a joint venture with South Korea's battery partner SK On. Georgia offers favorable tax incentives in its bid to become the southern EV manufacturing hub, and Hyundai is building its first U.S. factory dedicated to EV production at a site near Savannah.
ExxonMobil announced in November that it would drill for lithium in southern Arkansas, and the oil giant plans to begin producing the key material for electric vehicles by 2027.
