Mississippi Approves $1.9 Billion Electric Battery Plant for Industrial Vehicles

Tate Reeves speaks to supporters during an election night watch party at The Refuge Hotel & Conference Center, on November 07, 2023 in Flowood, Mississippi. Photo by Brandon Bell/Getty Images

Mississippi lawmakers have approved a $482 million incentive package, attracting three companies to invest $1.9 billion in building a battery plant for industrial electric trucks in the state’s northern region.

It is the second-largest capital investment in the state’s history, following approval of a $2.5 billion aluminum mill in November 2022.

The battery plant factory will be a venture involving Accelera by Cummins, Daimler Trucks & Buses, PACCAR, and the Chinese-based firm EVE Energy, which holds a 10 percent ownership stake in the plant, according to Mississippi’s Republican governor Tate Reeves.

Mr. Reeves said that the facility, to be built on 500 acres of the Chickasaw Trails Industrial Park in Marshall County along the Tennessee state line, will create 2,000 jobs with an average salary of $66,000.

It is expected to begin operations in 2027.

“I can’t imagine a better way to kick off the new year than with the announcement of the largest payroll commitment and the second-largest capital investment in Mississippi’s history,” Mr. Reeves said. “This historic investment by these industry-leading companies will enshrine our state at the forefront of the automotive industry for years to come and create 2,000 good-paying jobs in the process. Today’s announcement further demonstrates to the world that Mississippi is a top destination for business.”

One of the legislative pieces passed, Senate Bill 2001, which established the ‘Project Poppy Fund,’ authorizes the Mississippi Development Authority (MDA) to disburse $117 million in appropriated funds. This allocation supports the project in addition to the state’s investment of $365 million.

Marshall County Rep. John Faulkner, a Democrat, told the Clarion Ledger that he’s excited to see the project approved, calling it a “game changer.”

“It’s an amazing amount of money,” he said. “I think one of the largest I’ve seen since I’ve been in the legislature, but that goes to show how serious Mississippi is about being open for business.”

Concerns Over Chinese Investment

Republican Rep. Trey Lamar addressed concern over the Chinese investment.

“There is a ten percent player, that is the technology player that also I’m sure y’all have heard of,” Rep. Lamar said. “This bill has been vetted extremely well since it was first brought to our attention last week.”

He called the investment a “big deal” that “sends a message to the world” that the state is open for business.

“Are there some foreign components of this bill? Yes, there are,” he said. “We live—whether we like it or not—in a global economy that affects us every single day.

“The fact that companies or business interests outside of the United States are willing to come to the state of Mississippi to invest their money and hire Mississippians at high-paying, high-wage, and advanced jobs of the future says a lot about our state and the hard-working people that we have living here.”

EVE Energy—headquartered in Huizhou, Guangdong—is building lithium battery manufacturing bases throughout Europe and Southeast Asia, according to its website, with distributors located in the UK, Germany, France, Italy, and Russia.

EPA’s Call to Reduce Emissions

Jennifer Rumsey, the chief executive officer of Cummins, said the timing of the plant in Mississippi “is intentional,” according to the Wall Street Journal.

“The demand is going to grow as the regulations continue to drive a reduction in emissions,” she said.

The Environmental Protection Agency (EPA) will require diesel engines to reduce their emissions by 80 percent in 2027, the report stated.

In April 2023, the EPA announced Phase 3 of its greenhouse gas emission standards for heavy-duty (HD) vehicles that will be built after 2027.

“The new standards would be applicable to HD vocational vehicles (such as delivery trucks, refuse haulers, public utility trucks, transit, shuttle, school buses, etc.) and tractors (such as day cabs and sleeper cabs on tractor-trailer trucks),” the EPA said.

The agency will apply more standards for HD vehicles that will go into effect in 2028, “with progressively lower standards each model year through 2032.”

“This proposed ‘Phase 3’ greenhouse gas program maintains the flexible structure created in EPA’s Phase 2 greenhouse gas program, which is designed to reflect the diverse nature of the heavy-duty industry,” the agency said.

The EPA’s “Phase 2” program, the agency said, is intended to apply greenhouse gas emission standards to medium and heavy-duty engines and vehicles.

“The final standards are expected to lower CO2 emissions by approximately 1.1 billion metric tons, save vehicle owners fuel costs of about $170 billion, and reduce oil consumption by up to two billion barrels over the lifetime of the vehicles sold under the program,” the agency said.