General Motors will invest $4 billion to convert its Orion Township assembly plant for the production of full-size EV pickups and up to $2.5 billion to build Ultium’s third U.S. battery cell plant in Lansing, Michigan. The projects combined are expected to create approximately 4,000 jobs.
In addition the company also announced it is investing more than $510 million in its two Lansing-area vehicle assembly plants to upgrade their production capabilities for near term products.
GM will construct several additions to the Orion Township facility, renovate certain areas and make site improvements over the next three to five years, along with adding machinery, equipment, and special tooling. Through its joint venture with LG Energy Solution, GM also plans to construct its third U.S. Ultium high-volume battery cell manufacturing facility in the city of Lansing and Delta Township. The facility will include a clean room environment, machinery and equipment that will allow for the high-volume output necessary to produce cells at this capacity.
“Today we are taking the next step in our continuous work to establish GM’s EV leadership by making investments in our vertically integrated battery production in the U.S., and our North American EV production capacity,” said Mary Barra, GM Chair and CEO. “These important investments would not have been possible without the strong support from the Governor, Michigan Legislature, Orion Township, the City of Lansing, Delta Township as well as our collaboration with the UAW and LG Energy Solution. These investments also create opportunities in Michigan for us to bring our employees along on our transition to an all-electric future.”
To support today’s transformational investments, the Michigan Strategic Fund approved: A Critical Industry Program grant in the amount of $600 million for the creation of up to 4,000 jobs related to the Orion Township and Ultium projects; An 18-year Renewable Energy Renaissance Zone which will require a minimum investment of $1.5 billion with the potential for up to $2.5 billion, estimated to be worth $158 million; A Strategic Site Readiness Program grant in the amount of $66.1 million awarded to the Lansing Economic Area Partnership (LEAP) for public infrastructure and utility upgrades.
“GM’s $7 billion investment in Michigan, the largest in their history, will create and retain 5,000 good-paying jobs and enable us to build on our legacy as the place that put the world on wheels,” said Governor Gretchen Whitmer. “When it comes to investing in Michigan, GM and I have the same philosophy: ‘Everybody In.’ Michigan’s future is bright, and I will continue working with anyone to make transformational investments in our economy, create good-paying jobs, and empower working families.”
The Orion assembly plant and Ultium battery cell plant projects are the first to be approved utilizing the new Critical Industry Program and Strategic Site Readiness Program signed into law by Governor Whitmer in December. These programs were created to ensure Michigan could effectively compete for billions of dollars in investment and attract tens of thousands of jobs to bolster the state’s economy.
“This project will create new opportunities for businesses of all sizes across the state to ensure that Michigan retains its strong supplier network and provide a platform for further investment throughout Michigan. GM’s decision underscores the strength of the workforce within our state’s automotive sector and the bipartisan, Team Michigan commitment to winning the future of mobility and EV manufacturing here in Michigan,” said MEDC CEO and Michigan Strategic Fund President and Chair Quentin Messer Jr. “We appreciate GM’s continued vote of confidence in Michigan and their partnership on this historic economic win for our friends and neighbors, and are encouraged by the economic opportunity impact it will have across our state for decades to come.”
The Michigan Economic Development Corporation (MEDC) also authorized a State Education Tax abatement to be used in conjunction with the locally approved Orion Township abatement in support of the GM expansion.
“LEAP has been proud to lead regional efforts around this pivotal historic moment for Michigan and the Lansing region. We collectively thank Ultium and its investing partners for choosing the Lansing region and Michigan over other location options, and acknowledge the crucial personal leadership of Governor Gretchen Whitmer and MEDC CEO Quentin Messer, our state legislature and the outstanding leadership of Lansing Mayor Schor, Delta Township Supervisor Ken Fletcher and BWL CEO Dick Peffley,” said Bob Trezise, president and CEO of the Lansing Economic Area Partnership. “This project represents a secure future for our region and state in making electric powered vehicles, batteries and systems, along with potential semiconductor/chip-making and other high technology-related companies and suppliers that will follow the core EV and battery investments to build the future of mobility.”
The city of Lansing has unanimously approved a Renewable Energy Renaissance Zone and PA 198 agreement. Lansing and Delta Township also both passed unanimously an extended 425 revenue sharing agreement for the plant for 25 years. The Lansing Board of Water and Light’s Board of Commissioners also unanimously passed a special electric rate for Ultium. Additionally, in order to construct the new assembly plant, Delta Township and the Lansing Board of Water and Light will extensively and rapidly expand infrastructure capacity in support of the site.
In addition to Michigan Strategic Fund support, Orion Township approved PA 198 real property tax abatements for the Orion assembly plant expansions.