Michigan Scaled Back Our Next Energy Grant
The state board reduced funding and extended job creation deadlines for the battery developer.
Updated on Sept. 22, 2026 in Electric Vehicles
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Should states modify business grant agreements when companies face significant market changes?
The Michigan Strategic Fund board has voted to reduce the state grant for Our Next Energy from $200 million to $150 million. The agreement revision also lowers the company's job-creation requirement and pushes the deadline to 2037.
Why it matters
The company adjusted its strategy to pivot toward defense, railroad, and utility-scale grid storage markets following a reduction in federal support for electric vehicles. This shift reflects a broader re-evaluation of its manufacturing operations in Michigan.
The revised agreement requires a total capital investment of $1,672,495,944, an increase of $48 million. Meanwhile, the state-mandated job-creation target was lowered from 2,112 to 1,606 roles.
The players
Michigan Strategic Fund
This is the state agency responsible for overseeing and approving grants and economic incentives for businesses operating in Michigan.
Our Next Energy
This is a battery technology developer based in Novi that manufactures energy storage systems for various industrial and commercial sectors.
Gardner White
This is a regional furniture retailer that has leased 600,000 square feet of space from the battery manufacturer in Van Buren Township.
The details
Our Next Energy previously invested $117 million in its Van Buren Township facility, but the company has since leased 600,000 square feet of that space to Gardner White. The company also downsized its workforce, implementing layoffs in 2023 and again in early 2026 to reduce its burn rate.
Timeline
The original agreement was signed in 2022.
The company laid off 128 employees in 2023.
A total of 29 employees were laid off in Novi in January 2026.
The Michigan Strategic Fund board approved the agreement changes on September 15, 2026.
The new deadline to meet job-creation requirements is March 31, 2037.
Roadmap
This amendment underscores the volatile nature of the domestic EV battery manufacturing sector as firms pivot away from pure-play electric vehicle support. It highlights how quickly startups must recalibrate their long-term manufacturing strategies to survive shifts in federal policy.
Residents in the Novi and Van Buren Township areas may see reduced near-term industrial employment opportunities following the company's layoffs and facility downsizing. These changes signal a longer wait for the projected economic growth originally promised by the state grant.
The takeaway
Startups relying on government backing face significant financial risks when federal support for their specific technology wanes. Companies are increasingly diversifying into non-automotive sectors to secure long-term stability.
Further reading
Explore more analysis regarding industry shifts in Michigan Electric Vehicles.
Live Poll
Should states modify business grant agreements when companies face significant market changes?
