HANCOCK COUNTY, W. Va. (WTRF) — It was news that caused excitement across West Virginia from the Northern Panhandle.
FORM Energy, Inc. moves its battery manufacturing facility to Weirton.
Experts are calling it one of the biggest economic development announcements in the state’s history.
But how big?
It’s going to create even more economic activity and create that economic ripple effect.
John Deskins, Director, Office of Business and Economic Research, West Virginia University
FORM Energy’s proposed $760 million investment to build its iron-air battery manufacturing facility in Weirton is a major step forward for the state.
As it is built and grows, West Virginia’s economy will feel it.
John Deskins of the Bureau of Business and Economic Research at West Virginia University’s John Chambers College of Business and Economics was asked to study how much of an impact this new business is having on the state.
For a company this large, it can’t just reach full capacity overnight.
John Deskins, Director, Office of Business and Economic Research, West Virginia University
The study estimated impacts over several years, beginning in 2025, a year after operations were scheduled to begin.
West Virginia builds first iron-air battery manufacturing plant to create new jobs
A $111 million direct impact was identified from the performance of the FORM Energy facility alone.
Add to that more than $44 million in indirect and induced impacts and you have about $155 million total.
While Deskins said the study needed more detail to fully predict the economic impact, she also estimated economic data for 2027 and 2029.
These workers will take whatever money they have and spend it elsewhere in West Virginia. They will spend it in restaurants, cinemas, shopping malls, apartments or wherever, but they will spend this money again in the state economy to create additional economic activities.
John Deskins, Director, Office of Business and Economic Research, West Virginia University
Another part of the impact is jobs.
FORM Energy expects to employ approximately 750 people within a few years.
We estimate that this will eventually create about 4,000 jobs in the country when you consider the multiplier effect that comes from those 750 jobs. By the way, these are also well-paid jobs.
John Deskins, Director, Office of Business and Economic Research, West Virginia University
This is good news for a state that has felt the job losses of the COVID pandemic.
When COVID hit, we lost 14% of all West Virginia jobs in early 2020, but as of last fall we had fully recovered from COVID and we expect continued growth this year.
John Deskins, Director, Office of Business and Economic Research, West Virginia University
Deskins said the more years FORM Energy has been in operation, the higher the economic output number should rise.
While most of this influx would be felt in the northern Panhandle, the study doesn’t estimate exactly where the economic impact will be hit hardest.
It’s growth like this that’s expected not just in the Northern Panhandle but throughout the Mountain State. However, Deskins warned that the economy could be uncertain thanks to the national economy.
We expect growth. We expect the economy to remain healthy, but that’s not certain given this national climate.
John Deskins, Director, Office of Business and Economic Research, West Virginia University
A bill that would allow West Virginia to give FORM Energy some financial incentives to build their West Virginia facility passed both the House and Senate.
It now goes to Governor Jim Justice for final approval.
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