The Michigan Supreme Court revived a lawsuit Friday, Sept. 12 originally aimed at derailing a massive and controversial Ford electric vehicle battery project near the community of Marshall.
The immediate impact of the decision on the plant is unclear; work is already well underway at the site about 100 miles west of Detroit. But the ruling reinvigorates a movement to push back against a more than $2 billion electric vehicle battery plant project − one set to receive hundreds of millions of dollars in tax incentives − slated to start production next year.
“This is a clear victory for the citizens,” said Robby Dube, a lawyer representing Marshall-area residents who oppose the project.
In 2023, a group of local residents operating as a group called the “Committee for Marshall − not the Megasite” filed a lawsuit against the city of Marshall in Calhoun County Circuit Court. They argue the city clerk and fellow local officials improperly thwarted efforts to put to a vote certain actions that allowed Ford and others to start work on the sweeping site.
In early 2024, a Calhoun County Circuit Court judge dismissed the lawsuit. The Michigan Court of Appeals upheld that decision a few months later, but those who oppose the Ford project appealed.
The one-paragraph ruling from the Michigan Supreme Court says the appellate court decision is vacated. The high court mandates the lower court review the case, in light of a separate, 2017 state supreme court decision related to land transfers pertaining to economic development.
“By telling the Court of Appeals to address this, the Supreme Court is telling that court they got it wrong and need to fix the opinion,” Dube said in the statement.
In July, Ford told Reuters the plant is 60% complete, will employ 1,700 people and is still expected to start production in 2026.
Reached by phone Friday afternoon after the ruling, Marshall City Clerk Michelle Eubanks referred comment to City Manager Derek Perry. Perry said the city is reviewing the order and declined further comment, according to Eubanks. Ford did not immediately respond to a request for comment.
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Originally, Ford promised to create 2,500 and invest $3.5 bilion at the site. In late 2023, the automaker slashed the numbers, promising 800 fewer jobs, $1 billion less invested and a planned reduction the plant’s production capacity by roughly 40%.
As part of that plan, in 2024 Ford agreed to take about $750 million less in tax incentives. When the project was first announced, state economic development leaders promised roughly $1.8 billion in various tax incentives.