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GM Venture selects Michigan to build its third US-based EV battery factory

DETROIT (AP), General Motors and a joint venture partner plan to construct an electric vehicle battery plant in Lansing in Michigan. This will be their third such facility in the U.S.

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GM Venture selects Michigan to build its third US-based EV battery factory

GM Venture selects Michigan to build its third US-based EV battery factory

DETROIT (AP), General Motors and a joint venture partner plan to construct an electric vehicle battery plant in Lansing in Michigan. This will be their third such facility in the U.S.

In documents posted to the city's website, Friday's plans of the companies were made public. The companies claim that the plant will cost as much as $2.5 billion and would employ up to 1,700 people.

The site of GM's Lansing Delta Township Assembly plant, which was annexed by city officials under a revenue sharing agreement, would be used to build the factory. The plant would be built by a joint venture between GM Energy Solution and LG Energy Solution, called Ultium Cells LLC.

This is a major win for Michigan as it was unable to place three Ford Motor Co. battery factories or an electric vehicle assembly facility in Kentucky or Tennessee.

Documents seeking Renaissance Zone and industrial tax exemptions state that the joint venture is required to invest and create jobs. The building and improvements to the site would cover 2.5 million square feet (230,000 sq. meters). Two-thirds of this building will be used for battery cell manufacturing.

The documents state that the machinery and equipment includes electrode mixing, coating and assembly.

The first year of operation for the plant would be 2025. It would have 750 workers at the beginning, and 1,700 by 2026.

GM did not respond to specific questions about the location of the factory, but stated that it was developing business cases for future investments in Michigan.

Dan Flores, a spokesman for GM, stated that these projects were not approved. Therefore, securing all incentives available will be crucial to any business case to keep moving forward. I won't speculate as to when GM will decide on future investments in Michigan.

Governor. Gretchen Whitmer, the governor and the state legislature worked quickly to enact legislation that would encourage economic development in "critical" industries. They also prepared shovel-ready locations for business expansions. Although it has millions of dollars in federal discretionary panademic aid funds and surplus state tax revenues, it isn't clear what incentives Michigan could offer GM.

Michigan Economic Development Corp. spokesperson said that it was premature to comment on potential state support for GM.

Ford's September decision to build electric vehicles and battery plants in the southern states was a setback for the nation's auto hub. This is especially because Ford claimed that Michigan didn't have the right types of sites.

President Peter Spadafore stated that the Lansing City Council will meet Monday to discuss the tax breaks and approve them the following week.

He said that he understood there was a competition for a new battery plant. Lansing will do all it can to ensure we are competitive and bring millions of dollars to the community.

GM has also applied for tax relief in Orion Township (Michigan), where a factory that produces the Chevrolet Bolt electric vehicle and SUV. The company plans to add to the plant in order to make battery cells into packs for electric cars.

This means that GM intends to designate Orion as its third assembly plant for electric vehicles, alongside factories in Detroit-Hamtramck (Michigan) and Spring Hill (Tennessee). Flores declined to comment on the statement.

According to GM, it will spend approximately $2 billion to upgrade factories in order to make EVs. This would increase Michigan's total investment to $4.5 billion. GM shares closed Friday at $63.21, up 6%

GM stated that the joint venture would build four North American factories for EV batteries.

Two additional locations were also announced: Lordstown, Ohio, and Spring Hill, Ohio. The fourth location is not yet known.

GM set a goal to sell only electric passenger cars by 2035. The company intends to launch 30 electric vehicles worldwide by 2025. The company also pledged $35 billion to invest in autonomous and electric vehicles between 2020-2025.

GM's plans are revealed amid a race for North American battery factories in an effort to meet the rapidly increasing demand for electric cars as the world moves away from internal combustion engines.

Toyota had earlier this week announced that it would build a $1.3 million battery plant in North Carolina. Stellantis, previously Fiat Chrysler, announced it would build two North American battery plants. Ford has announced three plants in Kentucky, Tennessee.

LMC Automotive Consulting expects that the U.S. will see nearly 400,000 fully-electric vehicles this year. This is almost twice last year's figure. Although they still represent 2.6% of all sales, the firm anticipates that sales will grow to more 730,000 next year, and to more than 2,000,000 by 2025. Even at 2,000,000, EV sales would still only account for about 12% U.S. new car sales.

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