Akasol Announces Closure of Michigan Plants, Layoffs Ahead

News Summary

Akasol, an electric vehicle battery company, has declared the closure of its facilities in Hazel Park and Warren, Michigan, impacting 188 employees. This decision follows plans to relocate production to South Carolina and has raised concerns about the future of battery production in the region. The closures, set for April 14, 2023, signify the challenges faced by the battery industry amidst a growing electric vehicle market. Affected employees are left facing an uncertain job market as they prepare for this sudden transition.

Heartbreak in Hazel Park: Akasol to Close Plants, Lay Off Workers

In a surprising turn of events, the electric vehicle battery company Akasol has announced plans to close two of its facilities in Michigan, leaving 188 hardworking employees facing job loss. This news comes as the company filed a WARN notice with the state on February 11, 2023, signaling an end to operations in Hazel Park and Warren. The closures are set to take effect on April 14, 2023.

The Shifting Landscape of Production

After only a brief stint of less than five years, the Hazel Park plant is shutting its doors. Just to give you an idea of its recent history, this location came into operation in 2020, taking over the site of the former Hazel Park Raceway which closed two years earlier in 2018. Unfortunately, it seems that plans to expand and enhance battery production in North America have not progressed as hoped.

Akasol, which is originally a German company, was acquired by BorgWarner in 2022. This acquisition appeared promising, as Akasol initially had ambitions for growth, aiming to ramp up production capacity in the U.S. to an impressive two GWh annually by 2023. However, the recent decision to relocate production to South Carolina has dashed these plans.

What’s Next for the Workforce?

The decision to close these plants has left many employees understandably devastated. Each of the 188 affected individuals has been notified that their separation from the company is permanent. It’s never easy to hear news of layoffs, and in this case, those working in the manufacturing facilities in Hazel Park and Warren are now faced with an uncertain future.

For many employees, the thought of transitioning to a different job can be daunting. Even the best-qualified workers will feel the impact of such a sudden closure, especially in a tight job market. Akasol has informed both the Michigan Department of Labor and Economic Opportunity and local mayors about the pending layoffs, fulfilling requirements set forth by the WARN Act.

Challenges in the Battery Production Business

As the electric vehicle market continues to grow, battery production poses several challenges that companies must navigate. Sam Abuelsamid, an expert in market research, pointed out that the industry is riddled with significant R&D costs and the need for scale. Companies must innovate continually, and that can be a difficult road to travel.

The shift of all battery production to an established plant in Seneca, South Carolina raises eyebrows. While BorgWarner has emphasized its commitment to expanding its electric vehicle business—it aims to make eMobility a whopping 45% of its total revenues by 2030—this does little to ease the worries of Michigan workers suddenly facing unemployment.

The Bigger Picture

Akasol was once regarded as a rising star in the industry. It boasted over 300 employees and had operations in both the U.S. and Germany at the time of BorgWarner’s acquisition. Sadly, ambitious visions to expand in North America seem to have been curtailed. The company’s headquarters are located in Auburn Hills, Michigan, but with the recent plant closures, one has to wonder how this will affect the local economy.

This news serves as a stark reminder of the unpredictability of the job market and the ongoing transformation of industries as we transition to renewable energy sources. While the closure of Akasol’s plants in Michigan is undoubtedly a setback for the region, the focus now shifts to finding solutions for the impacted workers and wondering what the future holds for electric vehicle battery production in America.

Deeper Dive: News & Info About This Topic

• MLive: Akasol to Close Plants
• Wikipedia: Electric Vehicle Battery
• Detroit Free Press: Akasol Lay Off Workers
• Google Search: Akasol Electric Vehicle Battery
• Electrive: Akasol Orders Machines
• Google Scholar: Akasol Battery Production
• Detroit Free Press: Akasol Hazel Park
• Encyclopedia Britannica: Electric Vehicle
• Detroit Free Press
• Google News: Akasol