Gotion High-tech Co Ltd, a prominent Chinese electric vehicle (EV) battery manufacturer, is set to establish a state-of-the-art lithium battery manufacturing plant in Manteno, Illinois, with a substantial investment of $2 billion. This significant development is poised to generate approximately 2,600 new job opportunities, as confirmed by the office of the Illinois state governor on Friday.
In recent times, global EV battery manufacturers and automakers have been actively exploring opportunities within the North American market. This expansion drive aims to diversify supply chains while capitalizing on incentives provided under the Inflation Reduction Act.
Gotion's advanced battery technology is expected to play a pivotal role in bolstering the electric mobility landscape in North America. Furthermore, it is anticipated to foster enhanced economic and trade exchanges between China and the United States, as affirmed by Gotion's Chairman, Li Zhen.
Under the incentive package, Gotion will be eligible to receive substantial tax benefits amounting to $213 million over a 30-year period. Additionally, the company is set to receive $125 million in capital funding through the U.S. state's Reimagining Energy and Vehicles incentive initiative.
Local authorities have also granted Gotion a 30-year property tax abatement as part of the project's approval process.
Upon completion, the Manteno facility is slated to manufacture 10 gigawatt-hours (GWh) of lithium-ion battery packs and 40 GWh of lithium-ion battery cells. Production operations are expected to commence in 2024, marking a significant step in the advancement of sustainable transportation solutions.