Leveraging Michigan’s Assets as an Economic Growth Catalyst

By Timothy G. NashAnthony StorerBob ThomasParker Fairbairn

The One Big Beautiful Bill (OBBB) cuts red tape and trims taxes on new resource projects. It simplifies rules, clarifies costs, and enforces swift penalties. These reforms reduce investor risk and shorten the timeline from testing to production. As a result, the legislation will be able to reshape many state’s natural resource landscape. Michigan can be an ideal example of federal, state and local government partnering to develop a modern strategy that both safeguards the environment, especially the Great Lakes while responsibly develops oil, natural gas, and rare earth elements as well. With this new legal framework in place, Michigan is well-positioned to strategically leverage three of its most valuable natural assets.

1. Water as a Key Resource

Michigan’s freshwater, including the five Great Lakes and deep underground aquifers, is a long-term strategic asset. In addition to abundant surface water, groundwater beneath the Lower Peninsula alone is estimated to equal the volume of Lake Huron. Michiganders withdraw around 700 million gallons of groundwater daily for drinking, agriculture, and industry, reinforcing its central role in the state’s economy. Nearly 45% of Michigan residents rely on groundwater from wells or community systems, making aquifer protection a vital public health priority.

State environmental agencies have dubbed groundwater Michigan’s “Sixth Great Lake,” recognizing its significance for both economic resilience and environmental health. With OBBB enhancing state authority, states like Michigan can now promote industrial and municipal use of this resource while preserving environmental longevity.

2. History and Potential of Michigan’s Oil and Natural Gas Reserves

In the 1920s and 1930s, Michigan led oil and gas production in the Northeast, with prolific fields in Saginaw, Muskegon, and Mount Pleasant. The 1928 Mount Pleasant discovery earned the town the title “Oil Capital of Michigan.” By 1934, annual production exceeded 10 million barrels and peaked at over 23 million barrels by 1939. With decades of technological advancement since then, modest and environmentally responsible extraction is again feasible.

New formations and enhanced recovery techniques in the Dundee, Traverse, and Detroit River zones offer renewed potential across previously tapped areas. Under OBBB, Michigan can test cleaner extraction technologies in carefully selected zones, guided by scientific research and environmental oversight.

3. Rare Earth Element Prospects

Rare earth elements (REEs) are vital for clean energy, electronics, and defense. Although Michigan does not yet produce REEs commercially, geological surveys—especially in the western Upper Peninsula—indicate promising deposits in phosphate minerals and uranium-monazite complexes. The Michigan Geological Survey at Western Michigan University, alongside U.S. Geological Survey collaborators, is actively mapping critical minerals including REEs, copper, nickel, manganese, cobalt, and platinum group metals.

Past academic findings identified strong REE, thorium, and uranium signals in the Goodrich quartzite of Marquette County, indicating detrital monazite deposits. Because REEs are typically dispersed at low concentrations, their extraction demands precise scientific approaches and environmental safeguards. Yet, with demand rising, Michigan has the opportunity to emerge as a secure domestic supplier of these strategic materials.

Supportive Research and Pilot Programs

Since 2019, researchers at the University of Michigan and Western Michigan University have secured U.S. Geological Survey funding to map and assess Michigan’s mineral resources. Their work aims to quantify reserves and evaluate the feasibility of extracting rare earths and other strategic materials.

More recently, Wayne State University received a $3.1 million grant from the U.S. Army Corps of Engineers’ Engineer Research and Development Center (ERDC) for its REUSE project. This initiative is developing scalable methods to extract REEs from mine waste and industrial byproducts, aiming to minimize environmental impact and reduce dependency on foreign sources.

The Lower Peninsula’s Strengths

While the Upper Peninsula holds more metallic and REE-bearing rocks, the Lower Peninsula contains vast sedimentary formations with potash and saline brine minerals. A recent geological survey suggests a potash deposit spanning up to 22 counties, characterized by high salinity and potassium content. Additional elements, including magnesium, lithium, manganese, strontium, cesium, and helium, have also been identified in these brine systems, though not yet in commercial quantities.

Research into these resources is still early-stage, but their industrial applications in batteries, fertilizers, and specialty chemicals hold long-term promise. With OBBB in place, Michigan could initiate pilot projects for environmentally sound brine extraction that respects landowner rights and community standards.

Aligning Resource Development with Stewardship

Effective resource development must balance economic opportunity with environmental responsibility. That means rigorous, science-based assessments, continuous groundwater monitoring, and strict remediation protocols. Under OBBB, Michigan can require water reuse systems, restoration bonds, and closed-loop operations to minimize ecological impact.

Financial reforms allow agencies greater flexibility to invest in testing capacity and partner with universities and national labs. The shared objectives are clear: protect drinking water, limit land disruption, ensure air quality, and maintain wildlife habitats. Robust state data systems now enable real-time tracking of drilling permits, groundwater quality, and historical mineral activity.

Public oversight mechanisms ensure that any oil, natural gas, or REE development occurs with transparency.

Conclusion

Michigan’s natural assets include unparalleled freshwater reserves, a historic oil and natural gas sector, and emerging potential in rare earth and strategic minerals. Deep aquifers, once overlooked, now represent both a public health safeguard and an economic advantage. Oil and gas fields, long dormant, are candidates for clean reinvestment. And while REEs are not yet mined here, promising deposits and brine-based opportunities suggest Michigan could play a national role in critical mineral supply chains. Just recently, Nebraska announced the discovery of rare earth elements and a mine near Elk Creek, Nebraska. The sooner more states like Nebraska and potentially Michigan can join California, Georgia, Missouri, Montana, Texas, Wyoming and Alaska to ensure America’s independence from unfriendly rare earth element suppliers, the better.

Thanks to OBBB, Michigan now has a modern regulatory structure that pairs environmental stewardship with economic development. By empowering science-led policy and embracing public-private collaboration, Michigan can ensure resource development supports long-term prosperity and ecological integrity.

This is not a return to extraction for its own sake; it is a chance to pursue strategic, sustainable development with accountability and vision. The OBBB reforms lay the groundwork for pilot projects, research expansion, and community dialogue that can position Michigan as a leader in the next era of resource innovation.

Michigan’s economic future is not just in factories or finance, it is also in its fields, its rocks, and its water. With the right balance of protection and progress, these assets can be responsibly leveraged to secure jobs, strengthen communities, and build a more resilient state economy.

Dr. Timothy G. Nash is director of The Northwood University Center for the Advancement of Free Enterprise and Entrepreneurship (NUCAFEE). 

Mr. Anthony Storer is an honors economics and finance major and NUCAFEE student scholar at Northwood University. 

Mr. Bob Thomas is COO of the Michigan Chamber of Commerce. 

Mr. Parker Fairbairn serves in the Michigan House of Representatives from the 107^th District.

This article was originally published by RealClearEnergy and made available via RealClearWire.