DETROIT (AP) – General Motors and its joint venture partner Lansing are planning to build an electric car battery plant in Michigan, which will be their third plant in the United States.
The companies ’plans were announced in documents posted on the city’s website on Friday. They say the plant will cost $ 2.5 billion and employ 1,700 workers.
The plant will be built on the site of the Lansing Delta Township Assembly plant, which was added by the city of GM.
The plant will be built by a joint venture between GM and LG Energy Solution called Ultium Cells LLC. The plans are set out in documents that reflect the Renaissance Zone program.
The competition was a big win for Michigan, which missed three Ford Motor Co. battery plants and an electric vehicle assembly plant in Kentucky and Tennessee.
The documents state that the joint venture will commit to investment and job creation. It says the building will be about 2.5 million square feet (230,000 square feet) and two-thirds will be a “clean room” environment for the production of rechargeable batteries.
“Machinery and equipment consists of electrodes mixing, coating, assembling and forming areas,” the documents say.
The plant will start operating in 2025. It will start with 750 employees and by 2028 will employ 1,700 workers.
GM did not specify the location of the plant, but said it was developing business scenarios “for future potential investments in Michigan.” The company said it is discussing the benefits with local officials.
“These projects have not been approved and providing all available incentives is critical to any business moving forward,” spokesman Dan Flores said. “I don’t want to speculate about when GM management will make a decision on potential investments in Michigan.”
The move comes as Governor Gretchen Whitmer and the state legislature work to expedite the passage of bills to stimulate economic development. focused on “critical” areas and prepared shovel-ready sites to expand the business. It was not clear what new benefits Michigan would offer to GM, although it has billions of dollars to recover from a federal voluntary pandemic and has excess revenue from state taxes.
Ford’s decision in September to build electric vehicle and battery plants in the southern states was a blow to the country’s auto hub, especially when Ford said it didn’t have the kind of sites it needed in Michigan.
The Lansing City Council will meet Monday and next week to approve the tax cuts, President Peter Spadafor said.
“I understand there is competition for the battery plant and Lansing will do its best to make sure we are competitive to invest billions of dollars in these jobs and our community,” he said.
GM has also applied for tax breaks in Orion Township, Michigan, where the Chevrolet Bolt electric car and SUV factory is located. The company plans to build an addition to the plant to assemble battery cells into packages for electric vehicles.
This probably means that GM plans to mark the Orion plant as the third electric car assembly plant, along with plants in Spring Hill, Detroit-Hamtramk, Michigan and Tennessee. Flores did not comment beyond the company statement.
The company said it will spend about $ 2 billion to modernize plants to build EVs, bringing the total new investment in Michigan to about $ 4.5 billion.
The GM joint venture said it would build four plants in North America to produce EV battery cells.
Two more locations have been announced, Spring Hill, Tennessee and Lordstown, Ohio. The fourth address is unknown.
GM aims to sell only electric passenger cars by 2035. The company plans to produce 30 electric cars worldwide by 2025. He also promised to invest $ 35 billion in electric and autonomous vehicles from 2020 to 2025.