EVs – at $7B GM Makes Largest Announcement in History

Ultium Cells Lansing is GM’s third Ultium battery cell site in the US, after two battery cell plants being constructed in Ohio and Tennessee.

General Motors Co. (NYSE: GM) announced today an investment of $7 billion in four Michigan manufacturing sites, “creating 4,000 new jobs and retaining 1,000, and significantly increasing battery cell and electric truck manufacturing capacity. This is the single largest investment announcement in GM history.” Michigan taxpayers contributed to the plan.*

The investment includes construction of a new Ultium Cells battery cell plant in Lansing and the conversion of GM’s assembly plant in Orion Township for production of the Chevrolet Silverado EV and the electric GMC Sierra. Orion is GM’s second assembly plant scheduled to build full-size electric pickups, which translates to 600,000 full-size electric pickups in the U.S. annually. Consider Ford an increasingly threatened leader in full-size pickup truck sales: Ford is now increasing the production planning target for its electric F-150 to only 150,000 a year. (AutoInformed.com on Chevrolet Introduces 2024 Silverado EV ; Biden Bets on Detroit, Union Workers at GM’s EV Factory ZERO; Washington Diddles. India Puts Billions into Securing EV Jobs)

“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 investments are the latest step toward accelerating GM’s drive to become the EV market leader in North America by 2025. The Orion and Ultium Cells Lansing investments announced today will support an increase in total full-size electric truck production capacity to 600,000 trucks when both Factory ZERO and Orion facilities are fully ramped. GM has been the leader in U.S. full-size truck deliveries over the past two years. In addition, the company is investing in its two Lansing-area vehicle assembly plants for near-term product enhancements.

As previously announced, GM will continue to manage the conversion of its North American manufacturing footprint with “unprecedented speed, flexibility and precision.”

Today’s announcements include investments in the following locations:

  • Orion Assembly for production of Chevrolet Silverado EV and electric GMC Sierra: GM is investing $4 billion to convert the facility to produce electric trucks using the GM-developed Ultium Platform, which gives the company the flexibility to build vehicles for every customer and segment. This investment is expected to create more than 2,350 new jobs at Orion and retain approximately 1,000 current jobs when the plant is fully operational. GM estimates the new jobs at Orion will be filled by a combination of GM transferees and new hires. Electric truck production, including the Chevrolet Silverado EV and electric GMC Sierra, will begin at Orion in 2024. The Orion investment will drive significant facility and capacity expansion at the site, including new body and paint shops and new general assembly and battery pack assembly areas. Production of the Chevrolet Bolt EV and EUV will continue during the plant’s conversion. Site work begins immediately.
  • New Ultium Cells battery cell plant at Lansing site: GM and LG Energy Solution, via their Ultium Cells joint venture, are investing $2.6 billion to build Ultium Cells’ third U.S. battery cell manufacturing plant. This investment is expected to create more than 1,700 new Ultium Cells jobs when the plant is fully operational. Site preparations will begin this summer and battery cell production is scheduled to begin in late 2024. Ultium Cells Lansing will supply battery cells to Orion Assembly and other GM assembly plants.

Orion Assembly will become GM’s third U.S. assembly plant being re-fitted for production of Ultium-powered EVs. GM assembly plants in North America currently building, or being converted to build EVs, include Factory ZERO in Detroit and Hamtramck, Michigan; Spring Hill Assembly in Spring Hill, Tennessee; CAMI in Ingersoll, Ontario and Ramos Arizpe Assembly in Mexico. By the end of 2025, GM will have more than 1 million units of electric vehicle capacity in North America to respond to growing electric vehicle demand.

The Ultium Cells Lansing site represents GM’s third Ultium Cells battery cell manufacturing site in the U.S., following two Ultium Cells battery cell manufacturing plants being constructed in Ohio and Tennessee.

In addition to the EV-related investments in Michigan, GM is investing more than $510 million in its two Lansing-area vehicle assembly plants to upgrade their production capabilities for near-term products:

  • Lansing Delta Township Assembly: Investment is for production of the next-generation Chevrolet Traverse and Buick Enclave.
  • Lansing Grand River Assembly: Investment is for plant upgrades.

*The Michigan Strategic Fund or taxpayers 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. 

The Michigan Economic Development Corporation 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. In addition to MSF support, Orion Township approved PA 198 real property tax abatements for the Orion assembly plant expansions.

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. In order to construct the new assembly plant, Delta Township and the Lansing Board of Water and Light will extensively expand infrastructure capacity in support of the site.

It’s a shame that Build Back Better is obstructed by Republicans in the US Senate. (AutoInformed Biden’s Build Back Better Act Decreases Budget Deficit!)

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