Michigan officials have given the green light for $715 million in incentives for a $2.4 billion electric vehicle battery factory to be located in the state.
The factory will be opened by Gotion, a Chinese battery manufacturer partly owned by the Volkswagen Group. The incentives include $175 million in funding from the Strategic Outreach and Attraction Reserve, as well as a $540 million 30-year real estate tax reduction in the Renaissance Zone.
Gotion plans to set up four factories that together cover a total area of 2 million square meters. The site is expected to generate more than $13 billion in personal income and create up to 2,350 jobs. The median hourly wage on the site is $29.42.
Of the $175 million in funding from the Strategic Outreach and Attraction Reserve, car news notes that $125 million will come in the form of a performance grant to the Critical Industry Program, while $50 million will be a performance grant to the Strategic Site Readiness Program that will fund preparation of the 523-acre site.
“The auto industry is in an accelerated, full-fledged transition to electric propulsion, the impact of which will be transformative and far-reaching,” said a briefing memo from the Michigan Economic Development Corp. “To maintain the relevance of the automotive industry, let alone leadership, it is imperative for the state of Michigan to make as much investment as possible in the research, development and production of advanced battery technologies.”
It’s not yet clear which automakers will use Gotion’s batteries, but the company has previously said it will locate a third of its production capacity outside of China by 2025 to meet growing demand from foreign automakers building electric vehicles.
