A new plant in Detroit aims to make batteries to electrify boats as 1st step in a grander plan

Global mining giant Fortescue plans to make marine battery packs at a new factory in Detroit as a first step in scaling production for a variety of high-performance electric applications.

Fortescue Zero, the London-based green tech arm of the company, expects to manufacture 5,000 packs annually for EVOA Propulsion, a Florida-based integrator of watercraft powertrain systems for brands such as Chris-Craft and MasterCraft, said Andrew Carlisle, head of mobility for Fortescue Zero.

Production is expected to start by the fourth quarter of 2025 at the plant in the city’s Milwaukee Junction district, next to the Ford Piquette Avenue Plant Museum. The company earlier this year announced plans to invest up to $210 million and create up to 600 jobs at the location — a project backed by $12.7 million in state incentives.

Carlisle said the factory would begin production with 50-100 workers before hitting its total commitment by 2030, dependent on landing contracts with more customers.

“A ton of work has happened on the site,” Carlisle told Crain’s. “We’ve done a ton of clear out activity, readying us for the production line.”

The 30-34 kWh packs will be assembled at the plant with cells sourced from Asia, likely Malaysia. Those packs, which can be stacked up to six together for larger vessels, are then integrated with a power systems controller before being shipped to the customer.

The packs can provide 1,000 horsepower and be charged in under 30 minutes. They are modular in design, which means they can be used in a variety of vehicles as a plug-and-play option for OEMs and integrators.

The company did not choose the old industrial site in Detroit by accident. In addition to tapping into highly skilled production and engineering talent, the plant is in the stomping grounds of the Detroit Three, which Fortescue is working to land as customers.

Carlisle said the company is engaged with a number of OEMs in the region and is conducting feasibility studies with plans to enter more formal discussions by mid-next year.

“We’re not trying to disrupt their vertical integration strategies,” Carlisle said. “Candidly, they’ve already got those. Where we play is on that high performance end where they don’t always have those off-the-shelf solutions.”

The major automakers are already deep into manufacturing plans for mass market light vehicle production of EVs, tying up with major Asian battery makers such as LG Energy, Samsung and CATL. However, there remains market opportunity for lower volume, high performance products like an EV muscle car.

The market size for the high-performance electric segment in automotive is about $6 billion, Carlisle said. For marine, it is about $1 billion. Fortescue also has its sights set on ATVs and other leisure segments.

Others are also looking to crack into the burgeoning space and eyeing metro Detroit as a launching pad. German battery cell manufacturer CustomCells is considering the former GM Warren Transmission Plant site for a potential $100 million factory and 250 jobs building products for specialty electric vehicles.

Many of them will be displaying their wares, Fortescue included, this week at the Battery Show in downtown Detroit, which has become a staple for battery and tech suppliers.

“We’re incredibly excited about this product, this capability, because I think it really then helps decarbonize many of our customer’s applications quickly,” Carlisle said.

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