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08 June 2025
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Jun 08, 2025Construction Review
Nigeria’s Minister of Steel Development Shuaibu Abubakar Audu has stated that the Federal Government has reached an advanced stage in its efforts to revive the long awaited comatose Ajaokuta Steel Plant Project that is located in Kogi state.
This information regarding the project was disclosed by the minister during the weekend while hosting various stakeholders of the All Progressives Congress (APC). This event was held in Kogi State at his country home in Ogbonicha, Ofu Local Government Area of the state.
Location: Ajaokuta, Kogi State, Nigeria
Initial capacity (Phase 1): 1.3 million tonnes of liquid steel every year.
Planned expansion: the expansion is expected to increase capacity to 2.6 million tonnes and further to 5.2 million tonnes per annum in coming phases.
Thermal power plant: 110 MW capacity (2 generators of 55MW each).
Other facilities: the project also entails a lime production plant and an alumino silicate refractory plant. Also, it entails a tar bonded dolomite plant, water treatment and recirculation facilities, extensive gas facilities.
Recent revival efforts:
Also read: $400 Million Ogun Stellar Steel Plant Breaks Ground in Nigeria
The minister mentioned that the Federal Government has already signed a Memorandum of Understanding (MOU) with the Original Equipment Manufacturers (OEM). Additionally, the minister said that the government has further extended its search for private investors to China to make investments in the steel plant. This move is expected to mark a big step towards the plant’s resuscitation eventually.
“We are doing an amazing job. The journey has kicked off, and we will be able to turn Ajaokuta and deliver results hastily”, Audu mentioned.
Furthermore, he stressed that the move underscored the bold reforms and developmental strides of the President Bola Tinubu-led administration over the previous two years to boom the economy through steel development.
Also read: Nigeria’s $3.3 Billion Brass Industrial Park and Methanol Complex
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Nigeria Set To Revive The Multi-Billion Dollar Ajaokuta Steel Plant ProjectNigeria’s Minister of Steel Development Shuaibu Abubakar Audu has stated that the Federal Government has reached an advanced stage in its efforts to revive the long awaited comatose Ajaokuta Steel Plant Project that is located in Kogi state.
This information regarding the project was disclosed by the minister during the weekend while hosting various stakeholders of the All Progressives Congress (APC). This event was held in Kogi State at his country home in Ogbonicha, Ofu Local Government Area of the state.
Location: Ajaokuta, Kogi State, Nigeria
Initial capacity (Phase 1): 1.3 million tonnes of liquid steel every year.
Planned expansion: the expansion is expected to increase capacity to 2.6 million tonnes and further to 5.2 million tonnes per annum in coming phases.
Thermal power plant: 110 MW capacity (2 generators of 55MW each).
Other facilities: the project also entails a lime production plant and an alumino silicate refractory plant. Also, it entails a tar bonded dolomite plant, water treatment and recirculation facilities, extensive gas facilities.
Recent revival efforts:
Also read: $400 Million Ogun Stellar Steel Plant Breaks Ground in Nigeria
The minister mentioned that the Federal Government has already signed a Memorandum of Understanding (MOU) with the Original Equipment Manufacturers (OEM). Additionally, the minister said that the government has further extended its search for private investors to China to make investments in the steel plant. This move is expected to mark a big step towards the plant’s resuscitation eventually.
“We are doing an amazing job. The journey has kicked off, and we will be able to turn Ajaokuta and deliver results hastily”, Audu mentioned.
Furthermore, he stressed that the move underscored the bold reforms and developmental strides of the President Bola Tinubu-led administration over the previous two years to boom the economy through steel development.
Also read: Nigeria’s $3.3 Billion Brass Industrial Park and Methanol Complex
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08 June 20255 min readNigeria Set To Revive The Multi-Billion Dollar Ajaokuta Steel Plant Project
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08 June 2025
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John Deere Reinforces $20 Billion Commitment To U.S. ManufacturingJohn Deere this week reiterated that it would spend billions on its U.S. operations in the coming years — and refuted a report that it would freeze its domestic manufacturing.
The report, first published on Style on Main, suggested that the ag equipment and machinery giant would freeze U.S. production in an "unprecedented shutdown."
A statement issued by the company Thursday apparently sought to make everyone thaw the heck out, bluntly titling the piece, "Myth Busted: John Deere is NOT Freezing U.S. Manufacturing."
The company said it wants to "clear the air," and that it's not shutting down U.S. manufacturing. Rather, John Deere — as announced in its most recent earnings report — is committing some $20 billion to domestic production over the next 10 years.
"Our commitment to delivering value for our customers includes ongoing investment in advanced products, solutions and manufacturing capabilities," Deere CEO John May said in the statement.
The company operates some 60 U.S. facilities and has more than 30,000 employees.
"Over the next decade, we will continue to make significant investments in our core U.S. market," May added. "This underscores our dedication to innovation and growth while staying cost-competitive in a global market."
According to May, nearly 80% of Deere's U.S. sales and 25% of the company's international sales stem from domestically-made products.
John Deere, according to a company fact sheet, has already invested some $100 million in U.S. factories this year, including a 120,000-square-foot addition in Missouri, additional expansion in Greeneville, Tennessee, a new excavator factory being built in Kernersville, North Carolina, and new assembly lines being installed in Waterloo, Iowa to build the 9RX tractor.
John Deere has been in acquisition mode recently. In late May, the company bought Sentera, a company that makes drone cameras. It's the latest move by the company to further solidify its lead as an agricultural tech provider, helping farmers make more informed operational decisions.
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06 June 20255 min readJohn Deere Reinforces $20 Billion Commitment To U.S. Manufacturing
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06 June 2025
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Billion-Dollar Battery Plant Pauses Construction Amid Ev And Tariff UncertaintyCOLUMBIA, S.C. (AP) — A Japanese company has halted construction on a $1.6 billion factory in South Carolina to help make batteries for electric BMWs, citing "policy and market uncertainty."
While Automotive Energy Supply Corp. didn't specify what those problems are, South Carolina's Republican governor said the company is dealing with the potential loss of federal tax breaks for electric vehicle buyers and incentives for EV businesses as well as tariff uncertainties from President Donald Trump's administration.
"What we're doing is urging caution — let things play out because all of the these changes are taking place," Gov. Henry McMaster said.
AESC announced the suspension in construction of its plant in Florence on Thursday,
"Due to policy and market uncertainty, we are pausing construction at our South Carolina facility at this time," the company's statement said.
AESC promised to restart construction, although it didn't say when, and vowed to meet its commitment to hire 1,600 workers and invest $1.6 billion. The company said it has already invested $1 billion in the Florence plant.
The battery maker based in Japan also has facilities in China, the United Kingdom, France, Spain and Germany. In the U.S., AESC has a plant in Tennessee and is building one in Kentucky. The statement didn't mention any changes with other plants.
The South Carolina plant is supposed to sell battery cells to BMW, which is building its own battery assembly site near its giant auto plant in Greer. BMW said the construction pause by AESC doesn't change its plans to open its plant in 2026.
AESC has already rolled back its South Carolina plans. They announced a second factory on the Florence site, but then said earlier this year that their first plant should be able to handle BMW's demand. That prompted South Carolina officials to withdraw $111 million in help they planned to provide.
The company is still getting $135 million in grants from the South Carolina Department of Commerce and $121 million in bonds and the agency said a construction pause won't prompt them to claw back that offer.
South Carolina is investing heavily in electric vehicles. Volkswagen-owned Scout Motors plans to invest $2 billion and hire 4,000 people for a plant to build its new electric SUVs scheduled to open in 2027.
The state has for decades made big bets on foreign manufacturers like BMW, Michelin and Samsung that have paid off with an economic boom this century, but there is uneasiness that Trump's flirtation with high tariffs might stagger or even ruin those important partnerships.
McMaster told people to relax as state and business leaders are talking to Trump's administration and things will work out.
"I think the goal of the president and the administration is to have robust economic growth and prosperity and there is no doubt there has to be changes made in our international trade posture and President Trump is addressing that," McMaster told reporters Thursday.
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06 June 20255 min readBillion-Dollar Battery Plant Pauses Construction Amid Ev And Tariff Uncertainty
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06 June 2025
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Aesc $1.6 Billion Battery Plant In Florence On Hold Due To Economic ConcernsTo keep us onlineplease subscribe for just $1.
In a significant development for South Carolina’s electric vehicle (EV) industry, Japanese battery manufacturer AESC has announced a pause in the expansion of its Florence-based EV battery plant. The decision stems from prevailing market uncertainties, including potential changes to federal EV tax credits and tariff policies. Originally, AESC planned a $1.5 billion investment to construct a second facility adjacent to its initial plant, aiming to create over 1,000 additional jobs. However, the company has now halted these expansion plans, citing the need for a more stable policy environment.
In response to AESC’s decision, the South Carolina Fiscal Accountability Authority has rescinded $111 million in bonds that were allocated to support the expansion. These funds were intended for infrastructure improvements, site preparation, and the development of a training center. Governor Henry McMaster described the withdrawal as a responsible move, emphasizing the importance of prudent financial management in light of the project’s indefinite timeline.
Also Read California Flow Battery Energy Storage Project Developers Awarded $10M CEC Funding
Despite the pause in expansion, construction of AESC’s initial facility in Florence continues as planned. The $1.6 billion plant is expected to commence operations in 2026, employing approximately 1,620 workers. This facility will produce advanced lithium-ion battery cells for BMW’s Spartanburg assembly plant, contributing significantly to the region’s economic growth and the broader EV market.
Local officials view the expansion delay as an opportunity to address existing infrastructure and housing challenges in Florence County. Efforts are underway to improve transportation networks and develop residential areas to support future industrial growth. The community remains optimistic that, once market conditions stabilize, AESC will resume its expansion plans, further solidifying Florence’s role in the EV industry.
Also Read $500 Million Louisiana EV Battery Plant Construction Commences: The First of its Kind in the United States
Project Name: AESC Florence Battery Gigafactory
Location: Florence County, South Carolina, USA
Company: AESC (Automotive Energy Supply Corporation), a global leader in EV battery technology
Total Investment: $1.6 billion
Facility Size: Approximately 1.5 million square feet
Site Area: 870 acres within the Technology and Commerce Park
Production Capacity: 30 GWh per year
Primary Client: BMW Group’s Plant Spartanburg, supplying advanced battery cells for next-generation electric vehicles
Job Creation: 1,620 new high-value jobs
Construction Timeline:
Groundbreaking: June 2023
Original Completion Target: 2026
Current Status: Construction paused as of June 2025 due to policy and market uncertainties
Design and Construction:
Design Initiation: Early 2023
Estimated Completion: Originally set for 2025
General Contractor: Clayco
State Support and Incentives:
Total Incentives Offered: Over $255 million
Florence County Support: $135 million for project costs
State Support: $120 million for off-site infrastructure, training facilities, and site preparation
Incentives Adjustment: $111 million in bonds withdrawn following construction pause
Sustainability Initiatives:
Facility to be powered by 100% net-zero carbon energy
Commitment to responsible sourcing of critical battery components (cobalt, lithium, nickel)
Integration of renewable energy generation and battery recycling processes
Also Read Octopus Australia begins construction on Fulham Solar Farm and Battery project
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06 June 20255 min readAesc $1.6 Billion Battery Plant In Florence On Hold Due To Economic Concerns
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06 June 2025
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Aerospace And Aviation Manufacturer To Build $1 Billion Site In FloridaAerospace and aviation manufacturer Williams International announced plans to invest nearly $1 billion in constructing a 1 million-square-foot high-volume aviation gas turbine engine manufacturing site in the Florida Panhandle.
Following a multi-state search that began in 2023, the company plans to build the location's facilities in three phases at the Shoal River Industrial Park.
Williams International expects to begin construction on the first 250,000-square-foot facility later this year, with completion scheduled for late 2026. Subsequent facilities will be built in 2028, with the final 500,000-square-foot facility planned for 2035 or 2036.
Headquartered in Pontiac, Michigan, Williams International specializes in the design, manufacturing and support of aviation gas turbine engines.
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03 June 20255 min readAerospace And Aviation Manufacturer To Build $1 Billion Site In Florida
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03 June 2025
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Space Force Awards Bae $1.2 Billion For Missile Tracking SatsThe U.S. Space Force has tapped BAE Systems Space and Mission Systems–formerly Ball Aerospace–to build 10 satellites for the next phase of its missile warning and missile tracking constellation in medium Earth orbit (MEO).
Space Systems Command (SSC) awarded a $1.2 billion contract on May 29 through a firm, fixed-price other transaction authority agreement for Epoch 2 of the Resilient Missile Warning and Tracking (MWT) architecture in MEO, the command said in a June 2 press release. The first satellite delivery is scheduled for fiscal 2029, it said.
BAE Systems acquired Ball Aerospace in February 2024 and subsequently launched its new Space & Mission Systems business.
Epoch 2’s primary purpose is delivering resilient global hypersonic missile tracking access, the press release said. It is the next phase of the Space Force’s program to provide next-generation overhead persistent infrared (OPIR) capabilities via a multiplane space segment in MEO, along with an integrated ground segment and constellation-level systems operations, SSC has previously said.
BAE Systems is also building a prototype ground system to provide command and control (C2) capabilities for OPIR assets in geosynchronous Earth orbit (GEO) and highly elliptical orbits (HEO) under SSC’s Future Operationally Resilient Ground Evolution C2 program.
The Epoch 2 request for proposals was released on Aug. 9, 2024. The solicitation included plans for up to 18 satellites that will build upon the current Epoch 1 contract, and said the government plans to award up to two firm-fixed price agreements, with one award per vendor. SSC did not clarify whether it will award a second contract for Epoch 2 by Aviation Week’s deadline on June 3.
Plans call for the MEO-based constellation to be fielded over the next six years via a spiral acquisition process that would put new capabilities into orbit every two-three years under the so-called Epochs. Millennium Space Systems, a Boeing subsidiary, is on contract to build 12 satellites in two planes under the program’s Epoch 1 contract, with a projected delivery date of 2026-27.
The Space Force launched the program to provide persistent tracking of modern asymmetric threats such as hypersonic glide vehicles being developed by Russia and China, as well as ICBM launches. The sensors in MEO would bolster constellations with similar mission sets in GEO and HEO, as well as low Earth orbit.
SSC, the Space Development Agency and the Missile Defense Agency are working together through a combined program office to coordinate the development of missile warning, missile tracking and missile defense capabilities.
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03 June 20255 min readSpace Force Awards Bae $1.2 Billion For Missile Tracking Sats
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03 June 2025
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Bae Systems Launches $250M Shiplift, Land Level Ship Repair FacilityBAE Systems unveiled its new shiplift and land level repair complex during a ribbon-cutting ceremony at the company’s Jacksonville, Florida shipyard.
The development is part of a $250 million investment designed to transform the company's ship repair capabilities as a partner to the U.S. Navy and commercial maritime industry.
“The introduction of our new shiplift and land level repair facility represents more than just progress for BAE Systems Ship Repair, it reflects a shared commitment to innovation, growth and collaboration," BAE Systems, Inc. President and CEO Tom Arseneault said. "Together with the United States Navy and other key industry partners that depend on this port, we are building a stronger foundation for the future to help maintain our maritime superiority.”
The shiplift and land level repair complex will support the maintenance and repair of Mayport-based Navy vessels and commercial ships sailing into the Port of Jacksonville. With the capacity to lift ships displacing up to 25,000 tons and accommodate multiple vessels for maintenance simultaneously ashore, the new complex expands the shipyard’s capabilities threefold.
BAE Systems’ new facility will enhance production efficiency, strengthen regional maritime capabilities and advance environmental stewardship.
The project, together with Pearlson Shiplift Corporation, Foth Engineering and Kiewit Infrastructure South Co., replaced an 80-year-old drydock that had reached the end of its lifecycle. The shiplift system’s platform spans 492 feet by 110 feet, offering a more cost-effective and efficient alternative to traditional drydocks. It will be one of the 10 largest shiplift systems in the world and the largest in the Americas.
The first vessel lift in the facility is anticipated later this month.
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02 June 20255 min readBae Systems Launches $250M Shiplift, Land Level Ship Repair Facility
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02 June 2025
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$14 Billion In Clean Energy Projects Have Been Canceled In U.S. This YearMore than $14 billion in clean energy investments in the U.S. have been canceled or delayed this year, according to an analysis released Thursday, as President Donald Trump's pending megabill has raised fears over the future of domestic battery, electric vehicle and solar and wind energy development.
Many companies are concerned that investments will be in jeopardy amid House Republicans' passage of a tax bill that would gut clean energy credits, nonpartisan group E2 said in its analysis of projects that it and consultancy Atlas Public Policy tracked.
The groups estimate the losses since January have also cost 10,000 new clean energy jobs.
The tax credits, bolstered in the landmark climate bill passed under former President Joe Biden in 2022, are crucial for boosting renewable technologies key to the clean energy transition. E2 estimates that $132 billion in plans have been announced since the so-called Inflation Reduction Act passed, not counting the cancellations.
Last week's House bill effectively renders moot many of the law's incentives. Advocacy groups decried the potential impact that could have on the industry after the multitrillion-dollar tax breaks package passed.
"The House's plan coupled with the administration's focus on stomping out clean energy and returning us to a country powered by coal and gas guzzlers is causing businesses to cancel plans, delay their plans and take their money and jobs to other countries instead," E2 executive director Bob Keefe said.
The Senate is now reviewing the bill with an informal July 4 deadline to get it to the president's desk.
Some of the most recent cancellations include the Kore Power battery factory in Arizona and BorgWarner's closure of two EV manufacturing sites in Michigan. Bosch suspended a $200 million investment in a hydrogen fuel cell factory in South Carolina, citing changes within the market over the past year in a statement to The Associated Press.
Tariffs, inflationary pressures, nascent company struggles and low adoption rates for some technologies may also have been reasons for these companies' plans changing. For instance, the battery storage and electric vehicle sectors have seen the most impact in 2025, with the latter especially having had had a difficult past few years. Several projects spurred by the IRA were also canceled prior to 2025.
Of the projects canceled this year, most — more than $12 billion worth — came in Republican-led states and congressional districts, the analysis said. Red districts have benefited more than blue ones from an influx of clean energy development and jobs, experts say.
Georgia and Tennessee are particularly at risk because they are highly invested in EV and battery production, said Marilyn Brown, an energy policy professor at the Georgia Institute of Technology who was not involved in the analysis.
"If all of a sudden these tax credits are removed, I'm not sure how these ongoing projects are going to continue," said Fengqi You, an engineering professor at Cornell University who also was not involved.
A handful of Republican lawmakers have urged the continuation of energy tax credits, with some saying in an April letter to Senate Majority Leader John Thune, R-S.D. that a repeal could disrupt the American people and weaken the county's position as a global energy leader.
The Trump administration has sought to dismantle much of Biden's environmental and climate-related policy — what he calls the Democrats' "green new scam" — withdrawing again from the Paris climate agreement, rolling back countless landmark pollution regulations and environmental initiatives, reconsidering scientific findings supporting climate action, blocking renewable energy sources and more in an effort to bolster a fossil fuel-led "American energy dominance" agenda.
Meanwhile other countries are proceeding with green investments. The European Parliament is committing to the European Union Carbon Border Adjustment Mechanism, a policy meant to prevent "carbon leakage," or companies moving production to countries where climate policies are less strict. And the International Maritime Organization is moving toward a global carbon tax on shipping.
In a sign that not all hope is lost for the future of renewables in the U.S., April alone saw nearly $500 million in new development, with Japanese manufacturing company Hitachi's energy arm building out transformer manufacturing in Virginia and materials and technology company Corning investing in solar manufacturing in Michigan.
Still, $4.5 billion in development was canceled or delayed last month, according to E2's tally.
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29 May 20255 min read$14 Billion In Clean Energy Projects Have Been Canceled In U.S. This Year
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29 May 2025
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Gm To Invest $888 Million To Upgrade Engine Factory In Western New YorkBuffalo, N.Y. -- General Motors yesterday announced plans to invest $888 million to make new V8 engines at its Tonawanda Propulsion plant in Western New York.
According to New York Governor Kathy Hochul, the project will support 870 jobs at the factory, including 177 jobs that were deemed "at risk." Empire State Development, New York's economic growth corporation, will provide nearly $17 million in performance-based tax credits. The investment includes new state-of-the-art machinery, equipment, tools, and facility upgrades.
GM "has been a major manufacturer and one of the largest employers in Western New York for years," Governor Hochul said. "This impressive project demonstrates how public/private partnerships can help companies like General Motors expand their operations while supporting jobs in Upstate New York."
GM's sixth-generation V8 engines, used in full-size trucks and SUVs, are expected to deliver improved performance with better fuel economy and reduced emissions. The company says new combustion and thermal management developments are key factors driving the improvements.
The project is expected to start this July and be completed sometime in 2027.
GM says the investment will be the single largest the company has ever made in an engine plant, and Tonawanda will become just the second GM propulsion plant to make the new V8 engines. The factory will still make fifth-generation V8 engines while the plant is upgraded.
In January 2023, GM announced a $579 million investment in its Flint Engine plant in Michigan to assemble the company's sixth generation family of small block V8 gas engines along with the related block, crank and head machining.
The Tonawanda facility currently employs nearly 900 workers, with hourly employees represented by UAW 774.
"This enormous investment is exactly what we've been calling for," said UAW Vice President Mike Booth. "Skilled UAW members, like members of UAW Local 774, make GM's profits, so it's great to see the company investing back into its union workforce so we can keep building quality, world-class products."
GM's Tonawanda Propulsion Plant has been in operation for 87 years. The governor's office said GM has invested more than $1.5 billion into its manufacturing operations across the state over the last 15 years.
GM CEO Mary Barra says the latest investment shows the company's commitment to "strengthening American manufacturing and supporting jobs in the U.S."
In a statement, UAW President Shawn Fain said, "It's time for Ford and Stellantis to learn from GM ... GM is showing that it makes good business sense for major corporations to reverse course on the destructive race-to-the-bottom trade policies that have wreaked havoc on workers and destroyed blue-collar towns and cities across America."
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28 May 20255 min readGm To Invest $888 Million To Upgrade Engine Factory In Western New York
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28 May 2025
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Gm To Invest $888 Million In New York Assembly PlantGM plans to invest $888 million in its Tonawanda Propulsion plant to support production of a new line of V-8 engines for full-size trucks and SUVs. Photo courtesy General Motors
BUFFALO, NY—General Motors plans to invest $888 million in its Tonawanda Propulsion plant to support production of a new line of V-8 engines for full-size trucks and SUVs.
GM has made numerous investments in its manufacturing facilities over the past 15 years. In January 2023, the company announced a half-billion-dollar investment in its Flint Engine plant for production of V-8 engines. Today’s announcement marks the largest single investment the company has ever made in an engine plant and makes Tonawanda the second GM propulsion plant to produce this new generation of engines.
“Our significant investments in GM’s Tonawanda Propulsion plant show our commitment to strengthening American manufacturing and supporting jobs in the U.S.,” said Mary Barra, chair and CEO. “GM’s Buffalo plant has been in operation for 87 years and is continuing to innovate.”
The investment includes new machinery, equipment and tools, as well as facility renovations.
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28 May 20255 min readGm To Invest $888 Million In New York Assembly Plant
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28 May 2025
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Stellantis Announces $388 Million Investment In Metro Detroit MegahubStellantis has announced a $388 million investment to develop a Metro Detroit Megahub in Van Buren Township, Michigan, further advancing the efficiency and sustainability of its Mopar service parts distribution network.
The new facility, set to launch in 2027, will feature technology including AutoStore automated storage and retrieval systems, ensuring a modern and safe working environment for employees.
"Our customers count on us to deliver the right part, at the right time, every time," said Darren Bradshaw, senior vice president and head of Mopar North America. "With the Metro Detroit Megahub, we're building a faster, smarter and more reliable parts distribution network that puts their needs first. This investment reflects our commitment to innovation, sustainability and operational excellence, while also creating a modern, high-tech workplace for our employees."
The AutoStore system uses compact robots that navigate tracks above a high-density grid of storage bins to retrieve parts and deliver them to workstations, where employees pack and process final shipments.
As part of its broader consolidation strategy, Stellantis recently sold its Michigan parts distribution centers (PDC) in Center Line and Marysville, as well as one in Milwaukee, Wisconsin. Operations at these facilities will continue under a sale-leaseback agreement, providing essential support until the Metro Detroit Megahub and Warren Sherwood e-coat upfitting facility are complete.
The workforce for the Metro Detroit Megahub will consist of employees from the Center Line, Warren, Warren Sherwood and Milwaukee PDC locations, facilitating the transition for approximately 488 UAW-represented employees.
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22 May 20255 min readStellantis Announces $388 Million Investment In Metro Detroit Megahub
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22 May 2025
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Openai Recruits Legendary Iphone Designer Jony Ive To Work On Ai Hardware In $6.5B DealSAN FRANCISCO (AP) — OpenAI has recruited Jony Ive, the designer behind Apple's iPhone, to lead a new hardware project for the artificial intelligence company that makes ChatGPT.
OpenAI said it is acquiring io Products, a product and engineering company co-founded by Ive, in a deal valued at nearly $6.5 billion.
Ive became renowned for a meticulous design aesthetic that shaped the cultural zeitgeist during a 27-year career at Apple, which he left in 2019. He did his most influential work after Apple co-founder Steve Jobs returned to run the company in 1997, where the two forged a partnership that would hatch a succession of game-changing products like the iPhone.
The new OpenAI deal now thrusts Ive at the vanguard of AI — a technology driving the biggest industry shift since the iPhone's arrival.
The company hasn't said exactly what product they will be making but expect "physical AI embodiments" that bring generative AI chatbot technology out of computer screens into another form, such as through a car, humanoid robot or the AI-powered glasses being developed by competitors Google and Meta, said Gartner analyst Chirag Dekate, adding that it is too early to know for sure.
OpenAI said its CEO Sam Altman had been "quietly" collaborating since 2023 with Ive and his design firm, LoveFrom.
In a joint letter posted on OpenAI's website Wednesday, Ive and Altman said it "became clear that our ambitions to develop, engineer and manufacture a new family of products demanded an entirely new company."
That's when Ive co-founded io, which was incorporated in Delaware in September 2023 and registered in California in April 2024, according to state records. OpenAI said it already owns a 23% stake in io from a prior collaborative agreement signed late last year. It says it will now pay $5 billion in equity for the acquisition.
OpenAI said Ive will not become an OpenAI employee and LoveFrom will remain independent but "will assume deep design and creative responsibilities across OpenAI and io." Both OpenAI and Ive's design firm are based in San Francisco.
Leading the new io division for OpenAI will be longtime executive Peter Welinder, who led robotics research in the startup's early years and more recently has been vice president of its "new product explorations" team that delves into hardware, robotics and other early stage research.
Altman, 40, can only hope his still-blossoming partnership with the 58-year-old designer, works out as well as the mind-meld between Jobs and Ive.
When he started his own firm, Ive derived the LoveFrom name from Jobs' observation that one way to hail humanity is by "making something with a great deal of care and love."
Ive also chose to base LoveForm in a historic part of San Francisco, located just near bars and cafes that were once frequented by such Beat Generation luminaries as "On The Road" author Jack Kerouac and "Howl" author Allen Ginsberg.
OpenAI is headquartered about two miles away. Founded nearly a decade ago as a nonprofit research laboratory dedicated to safely building better-than-human AI for humanity's benefit, it remains controlled by a nonprofit board of directors even as Altman, its co-founder, has increasingly pushed it toward commercializing ChatGPT and its other inventions. It's not clear if Altman's collaboration with Ive began before or after Altman's short-lived ouster in November 2023, months after io's Delaware incorporation but before the new business was set up in San Francisco.
Altman earlier this month said OpenAI was abandoning plans to drop its nonprofit governance structure but is pursuing a plan to make changes that would make it easier to access capital and pursue mergers and acquisitions "and other normal things companies would do."
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22 May 20255 min readOpenai Recruits Legendary Iphone Designer Jony Ive To Work On Ai Hardware In $6.5B Deal
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22 May 2025
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