The Center for Economic Accountability announced on Feb. 27 that it named Michigan's subsidies for the Ford-CATL partnership as the worst economic development deal of the year.
The decision highlights ongoing debates about the effectiveness and transparency of large-scale public incentives for private projects. The group said its selection was based on concerns over the size of the subsidy, job creation estimates, and community response to the project.
According to The Center for Economic Accountability, "Michigan approved $1.75 billion in subsidies for the Ford-CATL battery plant, including an estimated $700,000 per job for positions expected to pay about $20 per hour for most workers... The group also criticized the use of a 4.38 employment multiplier, calling it unrealistic and significantly higher than the 2.0 multiplier typically recommended for state-level projects... It further cited reports of alleged 'dark money' campaigns aimed at residents who opposed the development." As reported by Bridge Michigan, some Marshall residents opposed the Ford-CATL plant due to a confidential approval process in which officials signed nondisclosure agreements that limited public discussion until late in the project’s development. The proposal calls for rezoning 741 acres of agricultural land, prompting environmental concerns about potential effects on the Kalamazoo River area and overall quality of life. More than 100 residents attended public meetings to raise concerns about traffic, land use changes and what they described as limited community input.
The Foundation for Defense of Democracies reported that China produces 94% of the world’s lithium iron phosphate batteries and processes 70% of global lithium. The group said that concentration presents potential risks to U.S. national security and the economy. Under the National Defense Authorization Act, the U.S. must eliminate Chinese-sourced materials from defense batteries by October 2027, underscoring concerns about reliance on Chinese supply chains.
The Center for Economic Accountability is an independent, nonprofit, nonpartisan organization focused on educational and advocacy efforts. It promotes a vision where free markets and rule of law foster economic opportunity, with governments providing essential services without corporate welfare or central planning. The group collaborates across spectrums to advance transparent, market-based reforms in state and local economic development.
