Chinese EV Battery Maker Gotion to Build $2 Billion Gigafactory in Illinois

Chinese EV Battery Maker Gotion to Build $2 Billion Gigafactory in Illinois - Chinese battery maker Gotion High-tech has chosen Illinois as the site for its new state-of-the-art $2 billion electric vehicle (EV) lithium battery manufacturing plant, the state's governor said on Friday.

Chinese EV Battery Maker Gotion to Build $2 Billion Gigafactory in Illinois

Chinese EV Battery Maker Gotion to Build $2 Billion Gigafactory in Illinois

Chinese battery maker Gotion High-tech has chosen Illinois as the site for its new state-of-the-art $2 billion electric vehicle (EV) lithium battery manufacturing plant, the state's governor said on Friday.

The factory will be built on a sprawling 150-acre site in Manteno and is expected to begin production next year. It will focus on lithium-ion battery cells, battery packs, and energy storage systems integration.

Illinois Governor J.B. Pritzker referred to Gotion's new gigafactory as "the most significant new manufacturing investment in Illinois in decades," which he said will help to create 2,600 new jobs.

"Today, we take another leap forward, announcing the largest electric vehicle battery production investment in Illinois to date," Mr. Pritzker said in a statement on Sept. 8.

"It's my pleasure to welcome a world-leading battery manufacturer—Gotion—to Illinois," he added.

Global EV battery makers and automakers have been eyeing the North American market for setting up new manufacturing plants as they look to diversify supply chains and attract incentives under the Inflation Reduction Act.

Gotion's total incentive package from Illinois is valued at $536 million. The company will be eligible for tax benefits totaling $213 million over 30 years and also get $125 million in capital funding from the U.S. state's Reimagining Energy and Vehicles incentive package.

Local authorities also approved a property tax abatement for 30 years for Gotion. Once completed, the facility is expected to produce 10 GWh of lithium-ion battery packs and 40 GWh of lithium-ion battery cells.

“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, as well as the prospects of the State of Illinois in the coming years,” Li Zhen, chairman of Gotion High-tech, said in a statement.
"When we come to Illinois, we are not building a new factory but are planning to reuse an existing one and bring it back to life again as our way of cherishing and conserving resources," he added.

Gotion Building Another Factory in Michigan

Meanwhile, Gotion Inc. announced last month that it was building a $2.36 billion EV battery factory in Michigan, near Big Rapids, Mecosta County.
Gotion Inc. secured $1 billion in U.S. taxpayer support for the Michigan factory, at an overall cost of $2.4 billion, according to reports. Concerns about the deal have been raised by Michigan residents, Republicans, and environmental groups.    [EPT]
It then came to light that Gotion had quietly registered as a foreign entity, according to its registration document submitted to the U.S. Department of Justice.  [EPT]

The document states that Gotion, which is based in Fremont, California, is “wholly owned and controlled” by Gotion High-tech Co. Ltd., a Chinese company based near Hefei, a city in eastern China.

The document also asks the registrant to state if “this foreign principal,” meaning the American company Gotion Inc., is either “supervised,” “directed,” or “financed” by “a foreign government, foreign political party, or other foreign principal.”

Gotion’s answer to this was "No." This is despite the fact that the company is "completely controlled" by China-based Gotion High-Tech.

The document also asks if the “foreign principal,” or Gotion Inc., will engage in “political activities.” Gotion’s answer to this was "Yes."

Gotion's North American Manufacturing Vice President Chuck Thelen has dismissed concerns and said that Gotion Inc. is “not Chinese-owned.”

"The rumors that you’ve heard about us bringing communism to North America are just flat-out fear-mongering and really have nothing based in reality," he said in August, according to Politico.

All companies in China, including foreign companies, are required by law to have within their structure a Chinese Communist Party (CCP) office that supervises the company’s operations.

Efthymis Oraiopoulos, Tom Ozimek, and Reuters contributed to this report.