The lithium-ion battery maker Gotion is reportedly aiming to construct a new battery gigafactory in Michigan based on its submitted application to the state by The Right Place, West Michigan’s economic development agency.
InsideEVs reported that a 30-year Renaissance Zone with no property taxes is what the company is requesting. Specifically, it is 523 acres spanning Big Rapids Township, Green Township, and Mecosta County.
On the other hand, the expected yearly property tax savings for Gotion would be $13 million if authorized. Remarkably, it amounts to around $390 million over 30 years. In addition, its plan to invest $2.36 billion would produce 2,350 new jobs.
It is worth noting that Gotion Inc. has its headquarters in Fremont, California. However, it is a subsidiary of a Chinese firm that Volkswagen owns 26.5% of. VW and Gotion High-Tech are partners in the significant Unified Cell project.
The report claims that the new facility will make batteries. However, the scale (GWh), clients, battery chemistry, or cell form factor are not disclosed. With 586 employments in its first year of operation, the facility is anticipated to open in 2024.
Meanwhile, the project as a whole is anticipated to be finished in 2031 with four phases.
|“For the development — dubbed “Project Elephant” in the application — Gotion would invest $2.36 billion in land improvements, buildings, machinery and equipment across four phases. The project aims to create 2,350 high-tech jobs at an average annual wage of $61,995 by the end of phase four, with hiring starting in June 2023 and wrapping at the end of 2031, according to the application.”|
The Right Place/Gotion forecasts that the project would require $14 million in public infrastructure improvements in addition to tax incentives. Intriguingly, Gotion chose Michigan over Illinois, Ohio, South Carolina, Georgia, Texas, and Kentucky, even though most of those areas had recently garnered sizable investments for battery gigafactories.
All things considered, North America‘s battery market may again become stronger if Gotion is granted clearance and moves through with the investment.