In a significant development, Gotion High-Tech Co., a prominent Chinese battery manufacturer, has chosen the state of Illinois in the United States to establish a state-of-the-art gigafactory with a staggering investment of $2 billion.
This groundbreaking facility is slated to commence production next year and holds the promise of creating 2,600 job opportunities.
The decision has been hailed as the most substantial manufacturing investment in Illinois in several decades, as affirmed by Governor J.B. Pritzker in an official statement.
The forthcoming Gotion plant, located in Kankakee County, will primarily focus on the production of lithium-ion battery cells, battery packs, and energy storage systems. To facilitate this groundbreaking endeavor, the state of Illinois has extended significant incentives, valued at an impressive $536 million.
Illinois has embarked on a mission to establish itself as a hub for cutting-edge technologies, encompassing domains ranging from quantum computing to life sciences and electric vehicle (EV) manufacturing.
In recent times, the state has formed a dedicated task force called Innovate Illinois, aimed at attracting federal funding, including resources from the Inflation Reduction Act.
This legislation, signed into law by President Joe Biden just over a year ago, provides generous tax credits and grants for projects related to electric vehicles, batteries, and clean energy.
Consequently, it has ignited fierce competition among states to offer their incentives and lure these burgeoning industries.
Li Zhen, the Chairman of Gotion, expressed enthusiasm about the venture, stating, “All that we see here are of enormous value to us: an enabling business environment, a supportive state government for the new energy industry, and their highly efficient work.”
This remarkable investment by Gotion is not an isolated endeavor. The company is simultaneously planning a $2.4 billion plant in Big Rapids, Michigan.
Moreover, it underscores the growing trend of Chinese manufacturers making substantial inroads into the US market, even amidst political discourse.
In a related development earlier this week, Cummins, a company headquartered in Indiana, announced its partnership with Daimler Truck Holding, Paccar, and China’s EVE Energy Co to establish a battery plant in the United States.
In an eco-conscious move, Gotion has chosen to repurpose an existing manufacturing site instead of embarking on the construction of a completely new plant.
This 150-acre facility, situated in the village of Manteno, south of Chicago, is poised to become a powerhouse of lithium-ion battery production.
The facility’s estimated output includes an impressive 10 gigawatt-hours of lithium-ion battery packs and a remarkable 40GWh of lithium-ion battery cells.
To sweeten the deal and ensure the success of this transformative project, Gotion will be eligible for substantial tax benefits, amounting to an impressive $213 million over a span of 30 years, as part of Illinois’ comprehensive funding package.
- Gotion’s $2 Billion Investment: Chinese battery manufacturer Gotion High-Tech is making a monumental $2 billion investment in establishing a gigafactory in Illinois, USA. This state-of-the-art facility is set to commence production next year and is expected to generate 2,600 job opportunities, marking a significant manufacturing boost for Illinois.
- Focus on Green Energy: The Gotion plant in Kankakee County will be dedicated to the production of lithium-ion battery cells, battery packs, and energy storage systems, contributing to the growth of green energy solutions in the region.
- State Incentives and Competition: Illinois, keen on positioning itself as a hub for innovative technologies, has extended incentives valued at $536 million to Gotion. The state’s Innovate Illinois task force is actively pursuing federal funding opportunities, including those provided by the Inflation Reduction Act, sparking competition among states for investments in electric vehicles, batteries, and clean energy.
- Repurposing for Sustainability: Gotion’s sustainable approach involves repurposing an existing manufacturing site in Manteno, south of Chicago, spanning 150 acres. This eco-friendly choice is expected to yield an impressive 10 gigawatt hours of lithium-ion battery packs and 40GWh of lithium-ion battery cells.
- Tax Benefits for Gotion: In a bid to support Gotion’s green energy initiative, the company is eligible for substantial tax benefits amounting to $213 million over a 30-year period, as part of Illinois’ comprehensive funding package.