Wednesday, January 18, 2023

Youngkin nixes battery plant for rural southern Virginia, citing concerns over Chinese influence

The Richmond Times-Dispatch reported a few days ago on "Gov. Glenn Youngkin’s decision to halt plans for a $3.5 billion Ford Motor Co. battery plant over his concerns about Chinese influence, [a decision that] cost one of the poorest areas of Virginia a reported 2,500 jobs with potential for more."  

A further excerpt follows, illustrating well the tension between the need for jobs in rural southern Virginia and concerns about Chinese influence: 

If Ford finalized the project, the plant would have gone in the Southern Virginia Mega Site at Berry Hill in Pittsylvania County, [population 60,501]. More than $200 million has been spent over 15 years to make Berry Hill a premier site and the largest publicly owned site in the Southeast. The plant would have built lithium iron phosphate batteries for Ford’s electric vehicles.

The location still has no tenant, however, after Youngkin intervened in late December to stop plans for the plant in Virginia because of its partnership with Chinese company Contemporary Amperex Technology. Youngkin first publicly discussed his decision after giving his State of the Commonwealth address on Wednesday.

Local officials said they could not comment on the situation because of a nondisclosure agreement, which is standard in such economic development projects. But Democratic state lawmakers slammed Youngkin, saying he put national politics in front of thousands of jobs in Southside Virginia. (Youngkin is considering a run for president in 2024.)

Senator Ghazala Hashmi, D-Chesterfield, wrote in an email earlier this week:  

During his campaign, the Governor made a promise to bring economic development and manufacturing jobs to our communities that are struggling — especially in rural Virginia — to attract industries that offer competitive wages.  The Governor’s decision to pull Virginia out of the competition for the new Ford facility puts the Commonwealth at a severe disadvantage.

Here's more on Berry Hill:  

The roughly 3,500-acre megasite at Berry Hill is owned by the Danville-Pittsylvania Regional Industrial Facility Authority, a joint entity involving both Danville and Pittsylvania County.

City and county officials hope to attract major industries that would bring thousands of jobs to the site. They are hoping to land a large deal that would transform the economic fabric of the area, which has lost its furniture, textiles and tobacco industries and is focused on advanced manufacturing.

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