$715 million is a lot of money—and that’s the amount a Chinese-owned
EV battery producer is getting to create a multi-billion dollar facility in Michigan. Forget about
Mo-Town; this new production plant is the real deal.
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What new company is setting up an EV battery facility in Big Rapids, Michigan?
Automotive News offers details into the developing business venture, revealing that Gotion, Inc. is the company to develop a $2.4 billion dollar EV battery facility in Big Rapids, MI.
But even better for the Chinese company is the $715 million they’re receiving from Michigan in order to help fund the construction and site development.
Most of this state-allocated money is coming from Michigan’s Strategic Outreach and Attraction Reserve, which a briefing memo released by the Michigan Economic Development Corp. explains.
Who owns Gotion, Inc.?
It appears that Volkswagen actually owns a portion of Gotion, but it’s unclear which EV manufacturer will actually receive the batteries being produced at the facility.
It’s a genius move for Volkswagen, Gotion, and whatever other company receives their EV batteries; due to new EV tax credit changes, EVs require North American-produced electrical components to qualify.
This will ensure that each company involved has access to a North American EV battery supply.
What other details about this new EV battery facility are available?
So far, we know that one of the crucial bits of funding for the EV battery facility came from a 30-year Renaissance Zone property tax abatement, which was approved by local officials last week and is valued at $540 million.
Also notable is that this new facility could actually be transformed into 4 separate buildings, creating 2,350 jobs within a combined 2 million square feet.
The state of Michigan anticipates that this new EV battery site will generate $13 billion in personal income and create the opportunity for investments and redevelopment.
Though some have raised concerns over a Chinese-owned business taking over the
Michigan EV battery industry, officials have labeled the new development a win for the local community.
The average hourly wage at the facility will be $29.42, nearly $10 above what the state identifies as a livable wage.
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