Beacon Manufacturing – Supporting LEV Innovation at Newlab

Newlab at Michigan Central is home to a new 10,000-square-foot center for manufacturers of light electric vehicles (LEVs) – two- and three-wheeled vehicles mostly used for short distances, such as e-scooters and e-bikes. The center, dubbed “BeaconLab,” is operated by the newly created Beacon Manufacturing and will operate as a prototyping and logistics services manufacturing consultant, coordinator, and manufacturing hub for startups. It is equipped with several bays of assembly stations and state-of-the-art advanced machinery for robotic wheel building, laser-tube cutting, and robotic welding, to accelerate startups’ journey from concept to scale. The company leases the space from Newlab and is paid a fee for service by clients. Beacon Manufacturing also owns the Detroit Bikes brand, which it purchased in May from Cardinal Cycling Group. SBN Detroit interviewed CEO Gary Thornton, who previously was general manager of Detroit Bikes, about plans for the center, trends in LEV mobility, and other topics. Q: Beacon Manufacturing is focused on prototyping and logistics services for light electric vehicle (LEV) manufacturers. Explain what this entails. A: Our work at Beacon Manufacturing is twofold. First, we focus on prototyping, helping startups move from concept to tangible products. We take initial designs and create physical prototypes, allowing companies to refine their ideas and demonstrate proof of concept. The second part involves logistics services, acting as a third-party logistics (3PL) provider. We rent warehouse space specifically tailored for LEVs. Our team manages everything from storing products to shipping them out, ensuring each vehicle is operational before it leaves the facility. This includes handling specific challenges related to LEV batteries and ensuring compliance with regulations. Q: What types of companies and vehicles do you work with? A: We primarily collaborate with companies focused on last-mile delivery solutions. These startups are experimenting with new vehicle designs – e-scooters, e-bikes, and even electric tricycles – to solve urban transportation issues. One example of our work is with Civilized Cycles, a Newlab-based startup developing an e-bike with a tricycle and trailer attachment. Their solution addresses congestion in cities like New York, where specific zones impose fees on larger vehicles. Using a smaller LEV, they can transport goods efficiently without contributing to traffic or emissions. Q: What is the market potential for LEVs? A: The LEV market is massive and largely untapped. The need for efficient, low-emission transportation in urban areas is growing rapidly. We’re seeing interest from companies large and small, all looking to shift away from traditional vehicles. Cities like New York, Paris, and others are exploring ways to reduce congestion and improve air quality by shutting down portions of the city to standard vehicles or charging usage fees. LEVs fit perfectly into this evolving landscape, providing a practical and sustainable solution for short-distance travel and deliveries. Detroit’s ecosystem is ideal for LEV development with its roots in automotive design and manufacturing.  Within a 20-mile radius, you can find suppliers for almost any component. We are working on LEVs as mentioned to address the last mile of delivery or traffic congestion, and we are currently working on an extremely rugged LEV that can be used to deploy power grids remotely for farmers and everything in between. There is a constant quest to come up with ideas to push the limits within Newlab and Southeast Michigan. Q: What challenges do LEV manufacturers face when scaling production? A: The biggest hurdle is cost. Traditional auto suppliers aren’t set up for small runs, so startups often face prohibitively high quotes. We are set up to focus on the individual manufacturing processes and tailor solutions to their scale. Another challenge is managing expectations. Many entrepreneurs want a final product that’s perfect, but early prototypes need to prioritize function over aesthetics. Our role is to guide them through this process, ensuring they have a viable product to show investors or test in the market. Q: What types of collaborations do you facilitate, and how do these impact LEV development? A: We enable companies to focus on their core strengths, such as design and marketing, by handling their logistics, manufacturing, and shipping needs. Currently, our warehouse hosts four electric motorcycle brands, two e-bike brands, and even an electric snowmobile company. These collaborations foster a supportive environment where different players in the LEV space can learn from each other, share resources, and accelerate their growth. Q: How do you see the LEV market evolving in the next 5–10 years, particularly in Southeast Michigan? A: The LEV market is poised for explosive growth, much like the e-bike market has experienced. The acceptance of battery-powered tools and vehicles is spreading quickly. From electric lawnmowers to chainsaws, we’re seeing a cultural shift toward cleaner, more efficient technologies. In Southeast Michigan, the manufacturing expertise built over decades in the auto industry provides a strong foundation for LEV innovation. Detroit is uniquely positioned to become a hub for LEV development and production. Q: How has Newlab enhanced Beacon Manufacturing’s ability to innovate and scale? A: Newlab has been transformative for our operations. The state-of-the-art machinery and resources available here – CNC (computer numerical control) machines, cleanrooms for electronics, woodshops, and metal shops – allow us to tackle complex manufacturing challenges. The collaborative environment also plays a crucial role. Being part of a community of innovators means we’re constantly learning and pushing the boundaries of what’s possible in LEV manufacturing. What are your plans for BeaconLab as it relates to the LEV industry in Southeast Michigan and beyond? A: We’re focused on scaling our operations to meet the growing demand. At Newlab, we’ve set up five fully stocked workbenches that startups can rent to assemble their vehicles. This hands-on space allows entrepreneurs to bring their concepts to life. Additionally, we’re expanding our offsite facilities to accommodate larger manufacturing runs. Our new 20,000-square-foot warehouse will support startups ready to scale from prototypes to larger production runs of 100 or even 1,000 units. Also, I’m extremely optimistic about Detroit’s future in this space. The city’s deep manufacturing expertise, coupled with the growing demand for

Technology-Driven Air Quality Monitoring Gains Traction in Detroit

JustAir, a Detroit-based startup cofounded by Darren Riley leverages data and technology to provide hyperlocal air quality insights, largely in urban areas. By deploying a network of air monitors, JustAir delivers real-time data that communities, policymakers, and environmental justice groups can use to push for meaningful action. With funding from initiatives that include Google for Startups Black Founders Fund, the company is building systems that aim to transform how cities like Detroit manage air quality challenges. SBN Detroit interviewed Riley to learn about the broader implications of air quality monitoring, the challenges of implementing these systems, and how accessible data can drive public health improvements and policy changes. Q: Why is air quality monitoring critical in urban environments like Detroit? A: Detroit has a history of industrial pollution and high traffic volumes, especially in areas like Southwest Detroit, where I live. These factors contribute to some of the worst asthma rates in the country. Traditionally, air quality data has been collected on a regional level, offering only a broad overview. But air pollution isn’t uniform across a city – it can vary dramatically from one block to the next. Localized data helps us understand where the worst impacts are happening, who is most affected, and when conditions are at their worst. This kind of granular information is essential for designing targeted interventions going forward. Q: How does air quality monitoring technology work? A: Traditional air monitoring relies on a handful of monitors spread across a large area, often providing limited insights. Our software facilitates and integrates multiple air monitors within a single area, sometimes scaling up to 50 or 75 units. These monitors collect data in real time, creating a detailed picture of air quality at a hyperlocal level. We don’t manufacture the monitors ourselves – we work with partners to deploy them. Our software acts as the brain, aggregating data and managing the network. The idea is to provide actionable insights that can help residents, and, also down the road, policymakers and stakeholders in cities like Detroit better understand their air quality challenges and begin to determine how to better manage them. Q: What is an example of your work in Southeast Michigan? A: We have a three-year contract with Wayne County, which, before this partnership, had just seven or eight monitors managed by EGLE (Michigan Department of Environment, Great Lakes, and Energy). We added 100 monitors across the county so now every community has at least one monitor. Residents can sign up to get alerts – they can subscribe to individual monitors in their area or around a particular school or place of worship, etc. They can set when they want to receive alerts. This is a customizable service and it’s free – anyone can visit JustAir.app/signup right now and sign up to receive those alerts. The county Department of Health Human & Veterans Services is our lead partner on this project and they’re diving into the data to better understand the air across the community. They’ll be able to use this information to improve the health, safety, and well-being of county residents. Q: What unique challenges do urban environments like Detroit face in addressing air quality? A: Urban air quality is influenced by a combination of mobile sources – like cars and trucks – and stationary sources, such as factories. Detroit’s high traffic volume, especially near international border crossings, adds to the problem. Wind patterns also play a role; on certain days, pollution can settle in specific neighborhoods, exacerbating the issue. Q: How does technology, particularly AI, help address these challenges, and what opportunities do you see for the future? A: Currently, we leverage AI to ensure the validity and accuracy of our data. This is crucial for providing communities with reliable information. We’re now moving into the next phase, where we aim to use AI to recommend actionable solutions for mitigating air quality issues. AI allows us to dig deeper into the root causes of pollution. It helps us analyze data patterns—such as specific pollutants, weather conditions, and wind patterns—to pinpoint sources of air pollution with greater confidence. By marrying environmental context with real-time data, we can provide more accurate insights. Looking ahead, the goal is to utilize these rich data sets to empower communities and policymakers to take informed action. We’re on the cusp of this now. Q: What are the challenges of deploying and maintaining air quality monitors in urban environments? A: Deployment involves hurdles like site selection, insurance, and technical logistics. Maintenance can be another challenge – we need to ensure data accuracy at all times. Our software includes an automated quality assurance system to detect and flag issues, ensuring the community gets reliable information. Q: JustAir recently received funding from Google. How will this investment be used? A: We’re one of ten companies nationwide to receive this funding, which is a great validator for us. Google conducted thorough technical due diligence, confirming that our technology is on the right track. We’re using the funding to enhance our AI capabilities, particularly in integrating contextual data with air quality metrics as I spoke about. The funding allows us to explore new solutions that can help inform and enforce public health policies. Q: How do you measure the success of your air quality monitoring initiatives? A: We have both short- and long-term metrics. In the short term, we focus on network reliability and user engagement—how often people access the data and whether they find it valuable. High engagement is a strong indicator that the information is meeting community needs. In the long term, we aim to measure health outcomes and policy impacts. For example, are asthma-related emergency visits declining in neighborhoods with high air quality awareness? Are cities using our data to implement more effective policies? Q: What does the future look like for JustAir? A: We’ve scaled significantly since launching three years ago, now partnering with 20 organizations across seven states. The future is about leveraging these networks to drive outcomes — working

Ecosphere Organics on Advancing Sustainable Biorefining

ECOSPHERE TEAM

Ecosphere Organics, cofounded by Brittanie Dabney, is focused on innovating within the sustainable biorefining industry. By leveraging advanced technologies, including artificial intelligence, the company aims to address critical challenges in resource recovery and material processing. The goal is to simplify the biorefining process, enabling companies to focus on developing sustainable end products rather than managing complex material recovery operations. Ecosphere is finalizing logistics and has run pilot programs, working toward launching with clients. SBN Detroit interviewed Dabney to learn more about the mission and technology behind Ecosphere Organics, the challenges it faces, and the opportunities she sees within the industry. Q: What is the driving force behind Ecosphere Organics, and what key problems does it aim to address? A: Our driving force is the urgent need to reduce the environmental impact of food and organic waste. Our goal is to help companies transition toward sustainable production practices by diverting valuable food waste from landfills and giving it a new purpose. Today, food waste is often simply discarded or composted, but there are many untapped opportunities to extract value from it. By refining food waste into components that can be used in industries like textiles, packaging, and bio-based chemicals, we can give companies the tools to be more sustainable while contributing to a circular economy. Q: What do these applications look like? A: Today, we focus primarily on pre-consumer waste, meaning clean food waste from sources like restaurant kitchens. This includes citrus peels, eggshells, coffee grounds—essentially, anything that hasn’t been contaminated by being on someone’s plate. By working with clean streams of waste, we can efficiently sort and sterilize the materials, which makes them ideal for biorefining. Take banana peels, for example. We can extract natural pigments from these peels, which can be used as dyes in the textile industry. Fibers from the banana stems can serve as fillers to reduce plastic content in consumer goods, and food-based fibers are also being explored as eco-friendly options in packaging. Right now, we’re focusing on converting food waste into powders that can be further refined for green chemicals, substrates for fermentation processes, or even bio-based fertilizers. Our approach is about seeing the full lifecycle of organic waste and giving it renewed purpose. Q: What work have you done to date? A: We officially launched in March 2024, and our early work has been focused on refining recipes for our material blends, bioplastics, and processes to scale. Right now, we’re working on logistics – figuring out how to streamline the collection of food waste suitable for urban areas, how to efficiently transport it to our location, and how to make it as easy as possible for food suppliers to collaborate with us. To that end we will be participating in a pilot program with Orange Sparkle Ball and Intermode, where there will be an autonomous robot to collect waste in Corktown and transport it to Ecosphere. By reducing reliance on diesel fuel trucks, this approach lowers emissions and makes the entire lifecycle of our raw materials more sustainable and cost-effective. Collecting waste locally not only supports a more efficient supply chain but also allows more businesses to join the bioeconomy in a sustainable way. Q: How do you leverage AI and how does this technology optimize the process? A: The biggest opportunity lies in scalability and efficiency. Advanced technology and AI will allow us to optimize everything from waste collection and processing to customized material selection. With these tools, we can better predict waste volumes, design adaptable systems, and improve the quality of the materials produced. AI in biorefining enables smarter, more sustainable processes that can be replicated across various regions and industries, supporting a broader shift toward a circular economy. AI also plays a role in educating companies. We can recommend specific applications for raw materials, such as high-quality pigments, bio-based fertilizers, or even bioplastics. AI will help predict material demand and recovery rates, which allows us to guide companies toward the best ways to integrate sustainable materials into their products. Our platform will also serve as a resource for companies involved in R&D or prototyping, providing valuable data on material properties and potential applications. Q: What are some of the biggest technological challenges you face? A: One major challenge is creating processing systems flexible enough to handle diverse organic waste streams. For example, different types of citrus peels—like oranges, lemons, and limes—often need to be manually separated before continuing the refining process. Designing a system that can automatically adjust to these varying feedstocks is complex, but we’re actively working on solutions. Another challenge is the inherent variability in organic waste itself. Restaurants source ingredients from different locations, resulting in diverse nutrient profiles. Designing systems that can consistently process this range of materials while maintaining the quality of the end product is a technical hurdle. Finally, ensuring the quality of our end materials is crucial. Integrating data into our platform to monitor and adapt our systems will be essential to maintaining the high standard we are aiming for across all processing operations. Q: Are there specific partnerships or collaborations in Southeast Michigan that you’re working on? A:  We’ve built partnerships with local restaurants, food service providers, urban farms and composters such as Sanctuary Farms. We also collaborate with other tech providers like Orange Sparkle Ball for waste collection solutions. Additionally, we’ve partnered with educational institutions and nonprofits like Make Food Not Waste, Black Tech Saturdays, Wayne State University, and the College for Creative Studies. For example, during Detroit’s Month of Design, we hosted “Waste to Wonder,” a community-centered and educational event where artists used pigments derived from food waste to create art. We’re also hoping to work more closely with the City of Detroit and other municipalities, with the goal of integrating our biorefining systems into broader sustainability strategies.  Q: What obstacles do companies face in adopting sustainable biorefining, and how do you help overcome them? A:  One major obstacle is the perception that sustainable practices are prohibitively expensive or difficult to

Phinia’s Twin Focus: Efficiency Today and a Carbon-Free Future

Based in Auburn Hills, Mich., Phinia (NYSE: PHIN) is a publicly traded company spun off from BorgWarner in July 2023 that is dedicated to advancing sustainable mobility solutions. It specializes in fuel systems, electrical systems, alternative fuel technologies, and aftermarket products, Phinia aims to enhance fuel efficiency, reduce emissions, and help drive the transition to cleaner, low-carbon fuels. SBN Detroit interviewed Todd Anderson, Phinia’s Chief Technology Officer, to explore the implementation of alternative fuel systems and their real-world applications. Q: Phinia has allocated 78% of its research and development to fuel efficiency and alternative fuel technologies and 30% of that to zero- and low-carbon fuel systems.  Can you tell us more about this initiative? A: We are committed to driving efficiencies today while moving toward a carbon-neutral and ultimately carbon-free future. It’s important not to focus solely on future technologies when there is a clear need to improve our current energy systems. By allocating 78% of our budget to fuel efficiency and alternative fuel technologies, we are addressing both immediate and long-term needs. This investment allows us to work on improving the systems that our customers currently use and are ordering while also investing in alternative fuels that will help us achieve decarbonization over time. Our funding applies to all aspects of our business. The research and development aspect, mentioned above, but also investing in other business functions, including manufacturing, supply chain, and quality to ensure that as a business we are ready to move forward into a new era. Q: Describe the different alternative fuel systems and what they are used to power today. A: Each of these fuel systems serves specific purposes and applications, providing a range of options for different vehicle types and needs. Advanced Gasoline Direct Injection (GDi) Systems are primarily used to power lighter vehicles, from passenger cars to medium-duty vehicles. Recently, we released a 500-bar GDi system with this higher pressure, designed to improve fuel economy and reduce emissions for passenger cars and light commercial vehicles. Hydrogen fuel cell technology powers electric vehicles (EVs) using an onboard fuel cell that uses hydrogen as fuel. This system is suitable for a range of vehicles, from lighter passenger cars to medium-duty vehicles, and could be particularly efficient for delivery vehicles in controlled environmental settings. Hydrogen Internal Combustion Engine (ICE) technology is well-suited for heavier applications where high loads, continuous operation, and challenging environments are common, such as heavy commercial vehicles and medium commercial vehicles. Hydrogen ICE provides the power and performance expected from traditional diesel or gasoline systems but without harmful emissions to the environment. Q: How is developing technologies for alternative fuels different from working on traditional combustion engines? A: Interestingly, it’s quite similar in many ways. The ways in which we develop liquid fuel systems for gasoline or diesel engines are directly applicable as we move toward alternative fuels. The basic physical principles, such as combustion and fluid metering, remain the same. The difference lies in adapting and refining the elements of these systems to work with alternative fuels. For example, in a hydrogen internal combustion engine, hydrogen gas is injected into the combustion chamber instead of gasoline. While the core technology remains similar, we need materials that can seal and respond appropriately to hydrogen gas, along with some design refinements. Q: What are the main challenges in creating and adopting alternative fuel technologies? A: The technology to use alternative fuels in vehicles is already well understood and has been proven effective. However, the challenge lies in the ecosystem needed to support these fuels. Take hydrogen internal combustion engines (ICE) as an example. While we have vehicles running effectively with this technology, faster market adoption requires sustainable hydrogen production at a scale that isn’t currently available. The infrastructure to deliver this sustainable alternative fuel to the point of use also needs to be in place. Currently, the cost of hydrogen is higher than will be acceptable for a broad market adoption. In my discussions with government officials in the U.S., Europe, and Asia, my call to action has been clear: ensure sufficient production of renewable hydrogen while developing the infrastructure needed to deliver it. This will help reduce costs and support wider adoption. Q: What do you see as the biggest opportunities for growth and innovation in alternative fuels? A: We see significant growth opportunities in the transportation sector, whether in passenger cars or commercial vehicles. In the shorter term, there is substantial interest in commercial vehicles due to their specific operating conditions. For example, there is great potential with captive fleets operating on fixed routes, where we can achieve significant progress without needing to rely on widespread public infrastructure for hydrogen deployment. This allows us to make meaningful advancements in those areas. Additionally, there is interest in alternative fuels beyond just transportation. We’re seeing opportunities in industrial applications, marine sectors, and stationary power generation. Industries like marine shipping, especially large vessels, are actively exploring alternative fuels. So, while there are significant opportunities in transportation, they extend far beyond that sector. Q: How does Phinia work with partners in the alternative fuel industry? Can you share any recent partnerships? A: Partnerships are critical for us — no company can operate as an island. We partner with government bodies such as the U.S. Department of Energy, the Environmental Protection Agency (EPA), the European Commission, and the UK Transport Authority. We also work closely with our customers to support their vehicle roadmaps and align our innovations to meet their needs. We have close partnerships with universities and educational institutions, which provide access to their innovative and advanced thinking while supporting communities and students alike. In addition, collaboration with our supply chain partners is vital. Q: How does Phinia ensure sustainability is integrated into product design and development, particularly with your “Design for Environment” approach? A: Sustainability is critical in the design process. Our design reviews include considerations like the potential for remanufacturing and the end-of-life designation for products, which are vital elements of a circular

$129M From IRA Boosts Michigan’s Wind, Solar Plans

According to an announcement made by the state and federal governments in July, Michigan is set to receive a significant financial boost to aid in the expansion of large wind and solar projects. Specifically, $129 million in federal funds has been designated to streamline the processes involved in siting, zoning, and permitting large-scale renewable energy installations. This initiative aligns with the state’s goal to rapidly decarbonize its electric grid over the next decade. The funding, part of a $4.3 billion allocation being distributed across the United States, is sourced from the 2022 federal Inflation Reduction Act’s Climate Pollution Reduction Grant program. SBN Detroit interviewed Joel Howrani Heeres, director of community resilience at Public Sector Consultants, who also was Detroit’s first sustainability director, for his thoughts regarding how the money should and will be spent, potential challenges, geographical impact, and other topics. Q: Michigan recently received $129 million in federal funding to advance large wind and solar projects. How do you see it being allocated and what are the biggest priorities to address in terms of large wind and solar? A: I think that the state is rightfully deploying this money to help incentivize local governments to permit solar and wind projects within their boundaries. We have a very aggressive goal to achieve as a state – 60% renewable energy by 2030. The funds provide a significant incentive for communities to host renewable energy infrastructure, offering up to $5,000 per megawatt. Rural areas often lack the resources and personnel needed to review permits and manage other aspects of developing this infrastructure. This financial support will be instrumental in helping these communities navigate the complexities involved in such projects. Q: The funding comes from the Federal Climate Pollution Reduction Grants (CPRG) program, created by the Inflation Reduction Act. Can you tell us more about this and its specific influence in Michigan? A: The CPRG is one of the first grant programs to enable both planning and implementation to address climate change. There is funding allocated for metropolitan areas above a certain size. To me, this regional approach makes a lot of sense. Emissions don’t stop at city boundaries. For example, there are many heavy industries on the Detroit/Melvindale border that impact that whole area and beyond. Taking a regional approach and also statewide grants have been used to help EGLE do their planning as well. I was disappointed to see that Michigan’s metro areas did not get implementation money from this grant, but accelerating renewables throughout the state is important. Q: What are the challenges that come with such large-scale complex projects in Michigan? A: First, local permitting and project development. The amount of land required for renewable energy installations presents another challenge, especially in rural areas where agricultural land is at a premium. Convincing these communities to accept large renewable installations, particularly when the power generated is likely to be consumed elsewhere, can be difficult. Discussing the benefits and costs of hosting these installations has become a political issue. Communities want to see tangible benefits and are reluctant to give up their land without adequate compensation. Thus, providing financial incentives to these communities could be an effective approach. Another important consideration is determining, from a grid perspective, the most strategic locations to connect these large installations to ensure efficient power transmission. Q: Is there a long runway with projects like this from an execution and timeline standpoint? A: Yes, there is. The process from conceptualization to actual ground-breaking involves numerous steps. This includes navigating the political landscape, such as public hearings and potential opposition. Additionally, there are essential stages like securing permits and installing infrastructure. Each of these components requires considerable time and careful planning. Q: Is there a geographical component? What areas of Michigan will be most impacted? A: Rural areas will be impacted the most. Beyond that, I don’t think there will be geographic concentration, I think it will spread across the state. Q: Do you foresee local opposition from Michiganders regarding these projects, and, if so, what are your thoughts on how to address this? A: Yes. Just the other day I was driving through Washtenaw County and saw signs that read “No Industrial Solar.” The focus returns to the tangible benefits of these installations. It is essential for people to see clear advantages. For instance, if a local government receives $5,000 per megawatt to enhance local services — funds that would not have been available otherwise — it can help alleviate some of the opposition to these projects. This financial support can be directed toward improving community services, thereby showcasing the positive community benefits of the installations. Q: Federal money will also flow to workforce development programs. What are your thoughts on how these projects may boost the economy and put people in jobs? A: It’s a crucial aspect of our current situation. We are undergoing a significant energy transition, shifting from fossil fuels to renewable energy sources, which represents a fundamentally different model. This transition requires Michiganders to acquire new skills to compete in the emerging green economy. Additionally, we’re moving toward the electrification of everything. By producing clean energy, we can electrify our homes, cars, and various aspects of our lives, as it all comes from a sustainable source. There is a critical need to retrain workers from the fossil fuel sector to participate in the electrified economy. Significant investments are being made in this area. Ultimately, this is a comprehensive ecosystem, and these changes will impact labor across all sectors. Q: What other ancillary benefits can we expect to accompany the execution of these projects? A: As we transition more of the energy load to cleaner technology, we’ll have less localized pollution, leading to statewide public health benefits. Additionally, there’s a significant potential for economic development. Michigan stands out as one of the most proactive states in terms of climate ambitions, which could attract industries seeking to operate on green power. Whether it’s tech companies, manufacturing firms, or other businesses, the state’s commitment to sustainability