GM, partners bringing $2.5 billion battery cell manufacturing facility to Lansing area

LANSING — A $2.5 billion battery cell manufacturing facility is coming to the Lansing area.

On Tuesday, General Motors Co. announced it will invest more than $7 billion across four Michigan manufacturing sites, creating 4,000 jobs and significantly increasing its battery cell and electric truck manufacturing capacity.

It includes building a new Ultium Cells LLC electric vehicle battery factory, a joint venture between General Motors Co. and LG Energy Solutions Michigan, Inc., adjacent to the GM Lansing Delta Township plant.

This also includes investing over $510 million at the Lansing Grand River Assembly and Lansing Delta Township Assembly plants to upgrade production.

The new Lansing area plant will create more than 1,700 new jobs when it is fully operational by late 2024, GM CEO Mary Barra said during a press conference Tuesday.

The total investment also includes new and upgraded Orion Township facilities that will support electric vehicles.

“This $7 billion investment is the largest in GM’s history and it's so appropriate that it's in Michigan,” she said.

The projects

The new Lansing area Ultium building and related site improvements will be approximately 2.5 million square feet, according to a Michigan Strategic Fund briefing memo on the project.

The project is significant to the area because it's bringing a large amount of well-paying manufacturing jobs to the state. The average hourly wage for the project in Eaton County is $22.50, above the county ALICE target wage of $19.88, according to the memo.

“Currently, over 10,000 people are employed within the automobility cluster in the Lansing region and we want to retain and expand those jobs—sustainably,” Lansing Economic Area Partnership President Bob Trezise said in a written statement. “This proposed 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.”

GM will also invest $4 billion in its Orion Township facility to convert part of the site to electric vehicle production to support electric vehicle trucks. A significant portion of the capital spending is for expanding the current site, including several additions totaling over 3 million square feet, renovating certain facility areas and site improvements over the next 3 to 5 years along with machinery, equipment and special tooling.

The plant will produce Chevrolet Silverado and GMC Sierra EV pickups, will create over 20,350 new jobs and retain about 1,000 when the Orion Township plant is fully operational in 2024, Barra said.

Incentives approved by the strategic fund

Before these plans could potentially move forward, GM, LEAP and Ultium needed to have an incentives package approved by the Michigan Strategic Fund, which approves grants and loans for different Michigan programs.

On Tuesday the MSF approved the incentives package, which included: a $600 million Critical Industry Program grant, a $66.1 million Strategic Site Readiness Program grant and a Renewable Energy Renaissance Zone for a period of 18 years or an MSF Designated Renaissance Zone.

“This morning the MSF board approved LEAP’s request for a $66.1 million Critical Infrastructure grant, which is a vital component of our regional proposal to secure a new Ultium electric battery plant, and every single piece of the proposal is necessary in order for the region and state to compete for this plant,” Trezise said. “We are deeply grateful to the MSF Board for approving our request this morning.”

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These incentives address the cost disadvantage of locating the project in Michigan compared to other state sites and competitive offers. Incentive support is critical to confirming a long-term commitment by the company to ensure its all-electric future will continue to offer quality jobs in Michigan and ensure a strong supply chain for potential additional growth, according to the memo.

Trezise said competition to secure the future of mobility is intense and the LEAP grant allows for the necessary infrastructure improvements required to compete for this project.

“The net gain to us as a state and region is incalculable because we are securing the future of an industry critical to our region and the entire state,” he said.

Significance to the state and region

Multiple municipal, United Auto Workers and business leaders spoke at the press conference announcing GM’s investment Tuesday, touting the significance and benefit of the project for Michigan.

Delta Township Supervisor Kenneth Fletcher said it's exciting for the Lansing region to be part of the clean energy revolution as the auto industry works to move toward zero emission vehicles. By moving to clean, renewable energy for cars, trucks and buses, people can dramatically reduce the amount of pollution going into the air and help combat climate change.

"There's been many studies done that have shown that by moving to zero emissions we can save thousands of lives each year," he said. "And Michigan and Lansing will now be a leader in that effort. So isn't that exciting?"

Orion Township Supervisor Chris Barnett said this investment will "create ripple effects in the community for decades and decades to come." James Harris, Director of UAW Region 1, and Steve Dawes, UAW Region 1D director, thanked the plant workers, GM and Gov. Gretchen Whitmer.

Whitmer said Tuesday was about being made in Michigan and it was a great day in the state.

"This is about the epicenter of electric vehicles and coming together and putting Michigan first and so we are thrilled, thrilled about this announcement today,” she said.

The jobs created from this project will generate more than $35 billion in new personal income over the next 20 years. That’s $35 billion in economic opportunity for Michiganders that will be spent at small businesses and invested in communities to help them grow and thrive, she said.

"Our future is bright," Whitmer said.

Contact Bryce Airgood at 517-267-0448 or bairgood@gannett.com. Follow her on Twitter @bairgood123.

This article originally appeared on Lansing State Journal: GM, partners to build $2.5 billion Lansing-area battery facility