When it was announced in 2024 that Amplify Cell Technologies would build a $1.9-billion electric vehicle battery plant in Marshall County, Mississippi leaders heralded it as one of the state’s largest economic development projects ever and approved up to $482 million in state incentives.
“This historic investment by these industry-leading companies will enshrine our state at the forefront of the automotive industry for years to come and create 2,000 good-paying jobs in the process,” Gov. Tate Reeves said.
But production, originally slated to start in 2027, is now delayed indefinitely. This is after the state has spent at least $107 million on the project.
However, state economic development leaders say the company hasn’t defaulted on any terms of the agreement for incentives yet.
“The joint venture partners agreed to finish building out the facility while delaying the timing for installing the manufacturing capacity. At this time, the production start date is uncertain,” Cummins, one of the partners in Amplify, announced during its first-quarter earnings call in May. The company attributed the decision to changing demand in the market.
Almost four months later, the company could not share a timeline for when production would start.
“The production timeline is being adjusted to reflect today’s market environment. We thus have no additional information to share at this time,” a representative for Daimler Trucks, another partner in Amplify, told Mississippi Today on Tuesday.
A series of delays
The May announcement is just the latest project setback.
Initially, the company said production would begin in 2027, but in October 2025 the company pushed the start of production to 2028. Then in April, the company laid off 73 of a total of 100 employees at the Byhalia factory.
This is a change from a year ago when the company was celebrating hiring 100 employees and then-CEO Kel Kearns told the Memphis Business Journal that the project was on schedule for production in late 2027.
The Mississippi Development Authority said the company remains in compliance with its contractual obligations with the state for the taxpayer-funded incentives.
According to the memorandum of understanding between the state and the company, Amplify has until 2031 to create 2,000 jobs and make a $1.9-billion investment. If the company fails to meet its contractual obligations, it could have to repay the state up to $232 million.
“MDA has determined that Amplify Cell remains in compliance with its contractual obligations. Should that status change, the agency will take appropriate action consistent with the agreement,” MDA said in April. The agency confirmed on Wednesday that the statement is still accurate.
Incentives for a ‘historic investment’
In 2024, Reeves called the project the “single largest payroll commitment of any major project and the second-largest economic development project.”
At the time, the joint venture between Cummins, Daimler Trucks and PAACAR aimed to be one of the largest commercial battery cell manufacturing companies in the U.S.
During a 2024 special session, the Legislature approved up to $482 million in incentives for the project, including hundreds of millions in bonding and over $100 million in direct appropriations.
State funds were to go to site preparation, workforce training and infrastructure projects, such as adding an interchange on U.S. Highway 72. In addition, the company also received other local and state tax incentives, such as a 10-year exemption from the state’s corporate income tax.
State economic development leaders say the deal remains on track.
“State incentives associated with the project are performance‑based and time‑bound, and the company’s compliance is evaluated as the project advances. MDA has determined that Amplify Cell remains in compliance with its contractual obligations. Should that status change, the agency will take appropriate action consistent with the agreement,” MDA said in a statement.
It was one of the state’s largest economic development incentives packages according to data from the nonprofit Good Jobs First.
It passed the Legislature in a day with only two senators and one House member voting against it.
“My basic reason for voting ‘no’ was it’s corporate welfare,” said Sen. Kathy Chism, a Republican from New Albany. She contrasts that with what she sees as a lack of incentives and tax breaks for the state’s small businesses.
“I have an issue with state tax dollars going to a Chinese company,” Chism said, referring to EVE Energy, a Chinese company that has 10% ownership in Amplify. In June, the Department of Defense designated EVE as a “Chinese military company.”
A changing market for electric vehicles
Turbulence in the EV market has led to manufacturing delays and cancellations across the U.S.
Since 2022, $18.3 billion of announced EV manufacturing investment has been canceled according to data from Atlas Public Policy, a data and policy research group.
The volatility of the current market is due to a multitude of factors, such as demand lagging behind supply, uneven growth and the expiration of clean vehicle tax credits under the Trump administration.
According to Atlas’ EV Hub, medium- and heavy-duty electric vehicle sales declined significantly year over year, falling from 63,428 vehicles in the first half of 2025 to 43,292 vehicles in the first half of 2026, a decrease of 31.8%.
Some EV battery plants have pivoted to producing batteries to meet the rising demand for power and battery storage from data centers. In June, Amplify did not comment when asked by the Indiana Business Journal whether the factory had been considered for an alternative use.
“Limited construction will continue to ensure that the joint venture remains well positioned for the future while maintaining flexibility,” Daimler said in its first quarter earnings call in May.
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