Pio plans to invest $170 million in Michigan to produce a hydrogen storage system

According to Automotive News, a subsidiary of French auto parts supplier Compagnie Plastic Omnium plans to invest $171 million in Michigan to support a large order from an automaker.

According to a briefing memo from the Michigan Economic Development Corp., or MEDC, Peou is looking for a site near Flint, Mich., to invest in a 200,000-square-foot plant to produce hydrogen storage systems.

Before full-scale production, the company aims to lease a 50,000-square-foot existing building to be used as a test lab capable of validating road-ready hydrogen storage systems. The location of the plant has not yet been determined. In addition, the company did not provide specific customer names or descriptions of the relevant models.

By 2027, the plant's output is expected to support 40,000 vehicles a year and create 175 jobs at an average weekly wage of $1,710 plus benefits, according to the memo's contents. MEDC awarded the project a $5 million performance-based grant and a 15-year 100% SESA waiver worth $2.4 million.

The incentives, approved by the Michigan Strategic Fund board on Aug. 22, will help offset a cost disadvantage compared to places like Ohio, Indiana and Canada.

"The program falls within MEDC's strategic focus area of supporting companies in the mobility and automotive manufacturing industries," the briefing memo said. Michigan aspires to be a global leader in the future mobility industry.