Changes to ONE agreement highlight risks of taxpayer-backed corporate handouts

State Rep. Ann Bollin, chair of the House Appropriations Committee, said changes approved to a state incentive agreement with Our Next Energy (ONE) reinforce why Michigan has moved away from large corporate subsidy programs funded through the Strategic Outreach and Attraction Reserve (SOAR) Fund.

The Michigan Strategic Fund approved amendments to a grant package originally tied to ONE’s proposed battery manufacturing project in Van Buren Township. The revised agreement lowers projected job creation from 2,112 jobs to 1,606 jobs and extends the timeline for meeting project commitments.

“When these incentives were approved, taxpayers were promised a major investment and more than 2,000 new jobs,” Bollin said. “Today, the job commitments are lower and the deadline to deliver has been pushed back by nearly seven years. This is another example of why Michigan should move away from large corporate handouts and focus on policies that help all employers grow and create jobs.”

ONE announced in 2025 that it would vacate most of its factory space in Van Buren Township, prompting state officials to halt additional grant payments after approximately $70 million had been distributed.

Bollin said Michigan can better support long-term economic growth by improving the business climate and investing in priorities that benefit employers of every size rather than directing large sums of taxpayer money to individual companies.

“Too often, taxpayers have been asked to take on the risk and these subsidy deals have failed to meet expectations,” Bollin said. “The best economic development strategy is creating an environment where businesses can succeed without relying on special deals from government.

“I want to see this company succeed. More jobs and investment in Novi would be welcome news for local families and small businesses in the area. I am hopeful the company can deliver on its revised commitments, and I will be monitoring progress closely to make sure taxpayers see the results they were promised.”