In a big win for Michigan, General Motors will invest $7 billion in four manufacturing facilities, making the state the “hub” of electric vehicle development and manufacturing.
GM said Tuesday it will spend $2.6 billion to build a new battery factory in the Lansing area and $4 billion to convert its existing factory in Orion Township to make electric pickups. It will also spend about half a billion dollars to make upgrades to its two existing vehicle assembly plants in Lansing.
GM calls it the “single largest investment announcement in GM history,” saying the move will create 4,000 jobs and retain 1,000 others.
Economists say that, in turn, will create thousands more ancillary jobs. GM currently employs 50,631 people in Michigan.
“We are building on the positive consumer response and reservations for our recent EV launches and debuts, including GMC Hummer EV, Cadillac Lyriq, Chevrolet Equinox EV and Chevrolet Silverado EV,” said GM CEO Mary Barra in a statement. “Our plan creates the broadest EV portfolio of any automaker and further solidifies our path toward U.S. EV leadership by mid-decade.”
As part of Tuesday’s announcement, GM said Orion Assembly, along with Factory ZERO in Detroit and Hamtramck, will manufacture the 2024 Silverado EV and GMC Sierra EV pickups.
GM also said it is working to build a new, more reliable supply chain through strategic supplier agreements for batteries and EV components. It is expected to be scalable, more resilient, more sustainable and more North American focused. Global supply chain issues have hampered GM and other automakers throughout the pandemic.
Michigan wins
Orion Assembly and the new battery cell plant will support total production of 600,000 full-size electric pickups when both Factory ZERO and Orion are fully producing in a few years, said GM President Mark Reuss, adding there will be “operational upside at both plants. Look for us to keep growing the capacity at Factory ZERO as well.”
That’s huge considering the state recently lost out on Ford Motor Co.’s $11 billion investment to build several new plants, including battery factories and an EV assembly plant, in Kentucky and Tennessee. That investment will create 11,000 jobs.
Reuss said GM’s investment in Michigan made sense because GM has many long-standing partnerships with suppliers based in the state and GM worked with local governments for various financial incentives.
The announcement from GM came on the same day the Michigan Strategic Fund approved a series of incentives that total about $824 million to build the battery plant and expand Orion Assembly plant.
“This news is great for us and for Michigan, the epicenter of where we’re developing EVs,” Reuss said. “Michigan will be the recognized hub of innovation in the U.S. for EV development and EV manufacturing.”
Barra said the investment would not have been possible without support from Gov. Gretchen Whitmer, the state Legislature, Orion Township, the City of Lansing, Delta Township and “our collaboration with the UAW and LG Energy Solution.”
GM will save tens of millions of dollars by integrating its battery assembly into its EV production and converting existing assembly plants, Reuss said.
GM aims to have more than 1 million units of EV capacity in North America by the end of 2025 and to convert half of its North American assembly capacity to EV production by 2030.
Ultium Cells Lansing
Ultium Cells LLC, GM’s joint-venture with battery maker LG Energy Solution, will spend $2.6 billion to build a new battery cell plant in Lansing on 590 acres adjacent to GM’s Lansing Delta Township Assembly plant.
