Ultium Cells LLC, a joint venture between GM (General Motors) and LG Energy Solution, plans to develop an electric vehicle battery manufacturing plant in Lansing, Michigan, which will be the company’s third such facility in the United States.
The facility would be erected on the site of General Motors’ Lansing Delta Township Assembly plant
The ambitions of the corporations were revealed in documents uploaded on the city’s website on Friday. They estimate that the factory will cost up to $2.5 billion and employ up to 1,700 people, which is a major victory for Michigan.
The joint venture is obligated to invest and create jobs, according to the filings seeking Renaissance Zone and industrial tax benefits.
It claims that the building and related site modifications will cover 2.5 million square feet (230,000 square metres), with two-thirds of the space dedicated to battery cell manufacture.
The first year of operation for the plant would be 2025, which would begin with 750 employees and grow to 1,700 by 2026.
According to GM, the joint venture will establish four EV battery cell plants in North America.
Spring Hill and Lordstown, Ohio, have been added to the list of places. The location of the fourth-place has not been revealed.
GM has also sought tax reductions in Orion Township, Michigan, where the Chevrolet Bolt electric car and SUV is manufactured. The company plans to expand the operation in order to assemble battery cells into packs for use in electric automobiles.
The corporation has stated that it will spend approximately $2 billion renovating factories to produce electric vehicles, bringing the total new investment in Michigan to approximately $4.5 billion.
This most likely indicates that the Orion factory, along with plants in Detroit-Hamtramck, Michigan, and Spring Hill, Tennessee, will be designated as GM’s third electric vehicle manufacturing plant.
By 2035, General Motors wants to offer solely electric passenger vehicles. By 2025, the business hopes to have 30 electrified vehicles on the road throughout the world. It has also committed to investing $35 billion in electrified and self-driving vehicles between 2020 and 2025.
Details of GM’s intentions come amid a scramble to establish battery plants in North America with Toyota investing $1.3 billion in a battery manufacturing facility in North Carolina, closely followed by Stellantis, formerly Fiat Chrysler, and Ford opening two and three new battery factories, respectively.
According to the LMC Automotive research group, new completely electric car sales in the United States are expected to reach about 400,000 this year, roughly doubling last year’s estimates.
