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General Motors could build $2.5 billion battery plant in Lansing

GM to cut another 1,100 jobs
Posted at 1:48 PM, Dec 10, 2021

LANSING, Mich. — General Motors has applied for a tax exemption for a proposed $2.5 billion battery plant in Lansing.

In paperwork filed with the city, Ultium Cells LLC, a partnership between GM and LG Energy Solution, say the plant would be a 2.5-million-square-foot facility at the Lansing Delta Township Assembly and that it would create up to 1,700 jobs.

"GM is developing business cases for potential future investments in Michigan," company spokesman Dan Flores said in a statement. "As part of developing a competitive business case, we are having discussions with the appropriate local officials on available incentives."

The company would not comment "beyond any information included in public filings," he said. "These projects are not approved and securing all available incentives will be critical for any business case to continue moving forward."

Bob Trezise, president and CEO of the Lansing Economic Area Partnership, said the plant would be "the single largest economic development project by far in our region's history if we were to land it.”

“The tax incentive package is substantial," he said, "but the net gain to us as a region to a city, a township, the state of Michigan, will definitely be much greater than any cost of these incentives.”

The company is asking for the creation of a Michigan Strategic Fund designated renaissance zone, which would abate most state and local taxes for the project.

State officials have been keen to compete for electric vehicle projects after losing out on an $11.4 billion investment from Ford, which decided to build an electric F-150 assembly plant and three battery plants in Tennessee and Kentucky.

Ultium is already building a battery plant in Lordstown, Ohio, that is expected to start production in August and plans to expand production to a second facility in Spring Hill, Tennessee.

"Currently, the demand growth for EVs, along with GM's commitment to an EV future, warrants the considerations for a third plant of equal capacity," Ultium wrote in the renaissance zone application. "The [joint venture] is looking for a third location to establish an additional plant."

The application says the plant would go online in 2025 and would bring on all 1,700 employees by the end of 2026.

Ultium "anticipates offering a competitive total compensation package with average wages of approximately $46,000 plus other benefits, including heathcare," the company wrote.

Ultium is seeking a renaissance zone that would begin at the end of 2022 and run for 18 years.

Lansing Mayor Andy Schor said in a statement that the city is "the perfect location for future investment from General Motors and Ultium, and I will do all I can to win this new battery plant and bring these jobs and economic opportunities here."

Schor said he will work with the state and with partners in the region "to put forth the best possible plan to land this incredible opportunity right here in Lansing."

The jobs the plant would bring and the billions in investment would be "transformational for the Lansing region,” Schor said.

The city of Lansing is set to consider the request on Monday night.

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Tianna Jenkins

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