Gotion will erect a new $2 billion electric vehicle battery factory in Manteno, Illinois, according to a joint announcement of Governor JB Pritzker and the Chinese battery maker on Friday.
The state’s Reimagining Energy and Vehicles (REV) incentive package and the new Invest in Illinois fund largely contributed to Gotion’s decision to pursue domestic battery production there.
“Today, we take another leap forward, announcing the largest electric vehicle battery production investment in Illinois to date. It’s my pleasure to welcome a world-leading battery manufacturer — Gotion — to Illinois.”
Governor JB Pritzker
Project details
The new li-ion battery factory will concentrate on battery pack production and battery energy storage system (BESS) integration for Gotion’s North American partners and customers.
The company expects the battery factory to have an initial production capacity of 10 GWh of li-ion battery packs and 40 GWh of li-ion battery cells.
Gotion will erect the plant on about 150 acres of land in Manteno.
Gotion aims to launch battery production at the new Manteno factory as early as 2024.
“All that we see here [in Illinois] 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, Gotion High-tech Chairman
Incentive package
The Illinois Government indicated that Gotion would receive a total incentive package of $536 million from the REV, Invest in Illinois, and other incentives.
The REV will provide Gotion tax incentives of $213 million within 30 years. It commits the battery maker to invest at least $1.9 billion and generate 2,600 full-time jobs with salaries of at least 120% of the average wage in Kankakee County. You can access the REV agreement here.
The Invest in Illinois will also offer another $125 million in capital funds. It is worth noting that Gotion is set to be the first company to receive support from this legislation, which was only implemented in early 2023.
The Illinois Government also offered the Chinese battery maker a property tax abatement for 30 years.
“This announcement is a testament to Illinois status as a leading destination for companies and investors who want the most talented workers, the best transportation systems, and a collaborative economic growth mindset from their partners in government at all levels. With 2,600 new jobs, a $2 billion gigafactory, and the most significant new manufacturing investment in Illinois in decades — it’s the most recent proof that we are in a new paradigm. Illinois is on the rise, and we’re open for business.”
Governor JB Pritzker
About Gotion
Gotion High-Tech is a China-based power battery manufacturer and energy solutions provider. It has already penetrated key markets beyond China, including Fremont in California. It has also recently entered the Vietnamese market through its joint venture with VinFast’s energy business unit, VinEs.
Gotion specializes in various battery chemistries, primarily for electric vehicles. These include the new LMFP (lithium-iron-manganese-phosphate) battery with a driving range of 1,000 km (621 miles) between charges and the LFP (lithium-iron-phosphate).
See Also:
- Gotion successfully acquires 25% stake in Slovak EV battery startup Inobat
- Gotion to develop a $2.36B EV battery parts factory in the US
- Gotion joins Edison Power in penetrating Japan’s energy storage market
- Gotion plans to invest $1.6 billion in 2 new battery projects
- Gotion is speculated to construct an EV battery factory in Michigan
Gotion’s major investment in Illinois will undoubtedly aid the state’s efforts in promoting the shift to clean energy, particularly in the transportation industry. It will also boost North America’s electric mobility and wider economy as soon as it begins battery production by 2024.
The local government of Illinois expects Gotion’s new battery factory to contribute to producing 1 million electric vehicles by 2030.
