Akasol Inc., a subsidiary of BorgWarner and a manufacturer of lithium-ion batteries for electric commercial vehicles, has announced it will permanently close two of its Michigan facilities, resulting in the loss of 188 jobs. The company plans to cease operations at its Hazel Park and Warren locations by April 14. According to a CBS News report, the WARN notice filed with Michigan’s Department of Labor and Economic Opportunity details that all employees will be affected by this decision.
The Hazel Park facility, situated on what used to be the Hazel Park Raceway, was launched less than five years ago. The Warren plant's history is more diffuse, but what is clear now is that BorgWarner plans to quickly and efficiently relocate battery production to a plant in Seneca, South Carolina. A BorgWarner spokesperson stated, "Consistent with those efforts, we have decided to shift all battery production from our Hazel Park and Warren, Michigan, locations to our existing plant in Seneca, South Carolina," according to a Detroit Free Press article.
The move comes amid a turbulent time for the EV battery industry, marked by significant competition and high research and development costs. Sam Abuelsamid, vice president of market research at Telemetry Insights, highlighted these challenges, suggesting that reaching an adequate scale is pivotal for surviving in this sector. "BorgWarner is a big company, but if they don’t see a near-term return on investment with all the other challenges around the industry right now, if they need to cut costs somewhere, the stuff that’s likely to take a longer return on investment is likely to be sacrificed in the near term," Abuelsamid told Detroit Free Press.
The company did not specify whether Michigan employees would be offered positions at the South Carolina facility but emphasized its intention to minimize the impact on personnel. "We aim to affect the fewest number of people possible," a BorgWarner spokesperson said in an emailed statement to MLive. The spokesperson's comments underscore the company's strategic shifts to adapt to the evolving demands of the eMobility market.
