Prominent Australian mining and green energy major Fortescue Metals Group is expanding its global manufacturing capabilities, announcing a $35-million investment to establish a manufacturing centre in Michigan, US.

The facility, projected to employ up to 600 people in its initial phase, will serve as a major hub for Fortescue’s production of automotive and heavy industry batteries, hydrogen generators, fast chargers and electrolysers.

Fortescue chairperson and founder Dr Andrew Forrest said that the investment would assist to rejuvenate the birthplace of the automotive industry.

“We are committed to investing in the next generation of green manufacturing projects that will help decarbonise business and heavy industry, and in turn create a strong future for manufacturing jobs in the United States,” he said.

The new manufacturing center is poised to benefit directly from Inflation Reduction Act (IRA) tax credits for battery modules, offering up to $10/kWh.

Fortescue Energy CEO Mark Hutchinson highlighted that Michigan and the US were attractive places to manufacture, given the skilled workforce, existing supply chain and significant incentives from state and federal governments, including the IRA.

The Michigan manufacturing investment follows a day after Fortescue announced its green energy investment accelerator platform, which is headquartered in New York, in the US.