It was supposed to be a massive win for Detroit. In 2023, the Australian mining giant Fortescue, led by billionaire Andrew Forrest, announced a plan to breathe new life into the historic Fisher Body Plant. They were going to pour $210 million into a shiny new "U.S. Advanced Manufacturing Center." People were pumped. We’re talking 600 good-paying jobs and a facility churning out EV batteries, fast chargers, and hydrogen generators.
But then, the floor fell out.
By September 2025, the whole thing was dead in the water. Fortescue pulled the plug on the Detroit plant, leaving a lot of people wondering what went wrong. Honestly, it wasn't just one thing. It was a perfect storm of shifting politics, disappearing tax credits, and a global strategy pivot that basically left the U.S. project out in the cold.
Why the Fortescue US EV battery factory scrapped in Detroit matters
When a company like Fortescue walks away, it’s a big deal. They aren't just some small-time startup; they are the world’s fourth-largest iron ore miner. They have deep pockets. But even deep pockets have limits when the "policy settings"—that's the corporate way of saying "the rules changed"—become a moving target.
The company was pretty blunt about it. They blamed the cancellation on the elimination of critical tax credits in the U.S. budget. Basically, the incentives that made the Detroit plant financially viable disappeared. When you're looking at a $210 million investment, those credits aren't just a bonus; they're the foundation. Without them, the math simply stopped working.
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It wasn't just Michigan
You’ve gotta look at the bigger picture to understand why the Fortescue US EV battery factory scrapped wasn't an isolated incident. Around the same time, Fortescue also ditched a $550 million green hydrogen hub in Buckeye, Arizona.
- The Arizona Hub: This was going to be a massive 80-megawatt electrolyzer plant.
- The Detroit Factory: Aimed at the "nuts and bolts" of the EV world—batteries and chargers.
- The Global Pivot: Fortescue started looking toward Australia, the Middle East, and Europe instead.
The common thread? Policy uncertainty. Fortescue’s leadership, including Gus Pichot (CEO of their growth and energy division), basically said that the "step back in green ambition" in the U.S. made these projects non-viable. They need stability to sink millions into the ground, and right now, the U.S. feels a bit too much like a roller coaster for them.
The political fallout in the Motor City
Local leaders in Detroit are, understandably, pretty upset. You had Mayor Mike Duggan and State Senator Stephanie Chang championing this as a way to revitalize the Milwaukee Junction neighborhood. When the news broke in late 2025, it felt like a gut punch.
There’s a lot of finger-pointing going on. Some blame the Republican-led budget changes that slashed the clean energy credits. Others point to the broader "war on clean energy" and a shift toward "drill, baby, drill" mentalities. Regardless of who you blame, the result is the same: 600 jobs that were promised are gone.
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Actually, it's worse than just the lost jobs. It’s the loss of momentum. Detroit is trying to reinvent itself as the "Silicon Valley of Mobility," and losing a high-profile player like Fortescue is a major setback for that narrative.
Is Fortescue giving up on green energy?
Kinda, but not really. This is where it gets nuanced. While they’ve been scrapping projects in the U.S., Andrew Forrest is still out there challenging anyone who says climate change is a "con job." He even sailed his Green Pioneer ship into the "lion's den" to prove that green ammonia-powered shipping is the future.
But "Twiggy" Forrest is also a businessman. He recently merged Fortescue’s mining and energy segments into "One Fortescue." In the process, he cut about 700 jobs globally to "lean out" the company. They are becoming more disciplined.
They aren't quitting green energy; they are just moving their chips to places where the government is more supportive. Think Australia’s "Future Made in Australia" plan or the hydrogen incentives in Europe. They are following the money—and right now, the money isn't in Detroit or Buckeye.
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What about the other battery plants?
If you’ve been following the news, you know Michigan has had a rough run lately.
- Gotion High-Tech: The state is trying to claw back $23.6 million in incentives after their project stalled out amidst massive local and political pushback.
- Natron Energy: A battery startup that had to lay off staff and halt plans in Michigan.
- General Motors: Canceled a $55 million factory and laid off workers at other EV-related sites.
It’s a pattern. The "EV gold rush" of 2022 and 2023 has hit a wall of reality. Market demand for EVs hasn't grown quite as fast as people hoped, and when you combine that with shifting federal support, companies start getting cold feet.
Actionable insights: What this means for the industry
The Fortescue US EV battery factory scrapped story is a cautionary tale for everyone in the green tech space. If you're an investor, a worker, or a local official, here’s what you need to keep in mind:
- Diversification is Key: Don't bet your entire local economy on a single "green" project. Policies can change with a single election cycle.
- Watch the Credits: Keep a hawk-like eye on federal tax incentives (like the 45V for hydrogen or battery manufacturing credits). If those are under fire, the projects are at risk.
- Infrastructure Still Matters: Even though the factory is scrapped, the sites—like the Fisher Body Plant—are still valuable pieces of industrial real estate. The focus should shift to attracting manufacturers who are less dependent on specific federal subsidies.
- Skill Up for the Long Haul: For workers, the skills in battery tech and hydrogen are still valuable globally. Just because one factory didn't open doesn't mean the industry is dead; it’s just relocating.
The dream of a "Green Detroit" isn't dead, but it’s definitely taking a different shape. We’re moving away from the era of "build it and the subsidies will come" and into a much tougher, more competitive phase of the energy transition. Fortescue's exit is just the loudest alarm bell so far.
Next Steps for You: To stay ahead of these shifts, you should look into the specific state-level incentives in Michigan that survived the federal cuts. Often, local grants are more stable than federal credits. Also, keep tabs on the "One Fortescue" restructuring updates to see where they actually decide to spend their next $6 billion—it’ll likely tell you exactly where the most stable green energy markets are today.