General Motors announced last Wednesday that production of battery cells has started in the new EV battery plant in Ohio, stating that it could potentially aid EV customers to qualify for the federal tax credits, according to 10WBNS.
Despite the ongoing production, the joint-venture plant would not start shipping products until it has finished its extensive production training, according to a spokeswoman. The produced battery cells are anticipated to be used in vehicles equipped with GM’s Ultium batteries, such as electric Hummer vehicles, Chevrolet Silverado pickup trucks, and the Cadillac Lyriq SUV.
It would be extremely difficult for many EV manufacturers to meet the new requirements imposed by the newly enacted Inflation Reduction Act, which stipulates that EVs and their batteries must be produced in North America or its trading partners.
Interestingly, the plant could be an effective strategy for General Motors to qualify for the new federal tax credit of $7,500 per vehicle. Since the newly introduced requirements aim to bring back the supply chain in North America, GM is definitely working hard to win the race.
It is worth noting that 800 people are currently employed by the $2.3 billion, 2.8 million square foot battery plant, which is expected to increase by 1,300 eventually. Additionally, the battery plant is close to Lordstown, Ohio, where General Motors shut down a small-car production facility.
All things considered, qualifying for the federal tax credits are essential for automakers to boost EV sales, especially that GM aims to produce only electric passenger vehicles by 2035. Therefore, the Ohio plant built with LG Energy Solution would be an effective strategy to help the company achieve its target and promote the shift to EVs among potential customers.