GM investing $6.6 billion into Michigan electric vehicle manufacturing with huge state incentives attached
New battery plant and truck assembly line announced
General Motors believes in an 'all-electric' future: CEO Mary Barra
GM CEO Mary Barra reveals the automakers plan to phase out internal combustion vehicles on 'The Claman Countdown.'
General Motors will invest $6.6 billion through 2024 in two Michigan electric vehicle manufacturing efforts backed by incentives from the state government, the company announced Tuesday.
The General Motors Orion Assembly Plant currently manufactures the Chevrolet Bolt EV and EUV. (Bill Pugliano/Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 55.68 | +0.81 | +1.48% |
The projects include a new battery factory being built in Lansing in partnership with LG Energy Solution and the retooling of its existing Orion Assembly Plant in Lake Orion to manufacture electric Chevrolet and GMC trucks.
The Ultium Cells factory in Lansing, Michigan, will be a joint venture of LG Energy Solution and General Motors. (GM)
"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," GM CEO Mary Barra said.
Michigan Gov. Gretchen Whitmer said the new jobs would create $35 billion in new personal income over the next 20 years.
The Chevrolet Silverado EV is one of the trucks that will be built at Orion Assembly. (AP)
The state government is providing a total of $824 billion worth of incentives in the form of a $600 million direct grant and additional tax relief. The money is coming from a $1 billion fund set up in December to make the state more attractive to new manufacturing investments in the wake of Ford's decision last fall to spend $11.4 billion on new electric vehicle facilities in Kentucky and Tennessee.
The batteries built at the new Lansing factory will be used for GM's Ultium electric vehicle platform. (GM)
Barra said the projects will create 4,000 new jobs and help bring GM's North American electric vehicle manufacturing capacity to one million units annually by 2025, including 600,000 trucks. The Chevrolet Bolt EV and Bolt EUV subcompact electric vehicles will continue at Orion Assembly during the transition, although production of both is suspended while GM replaces the batteries on previously sold units, which were recalled due to a defect that could lead to fires.
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GM recently began production of the GMC Hummer EV electric pickup at its Factory Zero facility in Detroit-Hamtramck, which will also produce the Chevrolet Silverado EV and electric GMC Sierra pickups starting next year.