Lansing City Centre. (Beautiful pictures)
DIGEST – Synthetic engine and a joint venture partner that plans to build tram battery factory in Lansing, Michigan, this will be their third factory in the US
The companies’ plans were revealed in documents posted on the city’s website Friday. They say the plant will cost up to $2.5 billion and employ up to 1,700 workers.
The factory will be built on the site of GM’s The Lansing Delta Town Assembly Plant, was merged by the city.
A joint venture between GM and LG Energy Solution called Ultium Cells LLC will build the plant. The plans were revealed in documents detailing a “Renaissance Zone” program.
The selection was a big win for Michigan, which missed three Ford Motor Co. the battery factories and an electric vehicle assembly plant are located in Kentucky and Tennessee.
The documents say the joint venture is obligated to invest and create jobs. It says the building will be about 2.5 million square feet (230,000 square metres) with two-thirds a “clean room” environment for battery production.
The documents say: “Machine and equipment includes areas for mixing, painting, assembling and forming electrodes.
The plant’s first year of operation is in 2025. It will start with 750 workers, sometimes 1,700 by 2028.
GM would not comment specifically on the location of the plant, but said it is developing business cases “for potential future investments in Michigan.” The company said it was discussing incentives with local officials.
Spokesperson Dan Flores said: “These projects were not approved, and ensuring all incentives are available will be critical to any business case moving forward. “I will not speculate on the timing of when GM management will make a decision on potential future investments in Michigan.”
The move comes as Governor Gretchen Whitmer and the state Legislature work to quickly enact it bill to encourage economic development focus on “important” industries and prepare locations for business expansion. It’s not clear what new incentives Michigan might offer GM, even though it has billions of dollars in federal discretionary pandemic rescue aid and surplus state tax revenue.
Ford’s decision in September to build electric vehicle and battery plants in southern states was a blow to the nation’s auto hub, especially since Ford said Michigan does not have the the type of place they need.
Lansing City Council will meet Monday and next week to approve the tax relief, said Chairman Peter Spadafore.
“I understand that there is competition for a battery plant and Lansing will do everything possible to ensure that we are competitive to bring jobs and billions of dollars in investment to our community. us,” he said.
GM also applied for a tax break in Orion Township, Michigan, which has a construction plant Chevrolet Flash tram and SUV located. The company wants to build an additional factory to assemble battery cells into packages for electric vehicles.
This means GM plans to designate the Orion plant as its third electric vehicle assembly plant, along with plants in Detroit-Hamtramck, Michigan and Spring Hill, Tennessee. Flores would not comment beyond the company’s statement.
The company has said it will spend about dollars2 billion in factory upgrades to build electric vehicles, which would bring total new investment in Michigan to about $4.5 billion.
GM said the joint venture will build four plants in North America to produce EV battery cells.
Two more locations have been announced, in Spring Hill, Tennessee and Lordstown, Ohio. Fourth place is yet to be revealed.
GM has set a goal to sell only electric passenger vehicles by 2035. The company plans to roll out 30 electric vehicles globally by 2025. It has also committed to invest $35 billion in electricity and self-driving car from 2020 to 2025.
