General Motors is considering investing more than $4 billion in two Michigan plants to boost its electric vehicle production capacity, according to sources and documents made public on Friday.
Documents show GM has proposed to build a $2.5 billion battery plant near Lansing with partner LG Energy Solutions.
The largest US automaker is considering a $2 billion overhaul of its Orion Township assembly plant north of Detroit to create the next generation of electric vehicles. The total investment could top $4 billion, a source familiar with the plan told Reuters.
Documents posted by the city of Lansing show that GM is considering building a battery cell manufacturing plant in nearby Delta Township, which could employ 1,700 people by 2028. Lansing City Council is expected to consider the proposal on Monday.
The joint venture battery plant will be 2.5 million square feet and is currently on land owned by GM, the documents say, adding that “the battery cell production facility will generate significant economic activity throughout Michigan.”
GM shares rose 4.8% to $62.50 in afternoon trading.
The investment plans were first reported by the Wall Street Journal.
Michigan state lawmakers are moving for expedited approval of plans to boost the state’s ability to win new electric vehicle and battery plant investments.
In September, Ford Motor Company chose Kentucky and Tennessee instead of its home states of Michigan for new battery and electric vehicle production.
Ford and its Korean battery partner SK Innovation said they would invest $11.4 billion to build an electric F-150 assembly plant and three battery plants in the United States.
If approved, GM’s share of the total investment in Michigan’s two EV projects would be at least $3 billion.
The source said the Orion plant, which now manufactures the Chevrolet Bolt, will be converted into manufacturing products using GM’s Altium EV platform.
GM first halted production of the Bolt in August following a major battery recall and most recently extended the halt to the end of January.
GM Chief Executive Mary Barra told reporters Thursday that decisions on new plants in Michigan and elsewhere could be “weeks away.”
GM said in a statement on Friday that it was “developing business cases for potential future investments in Michigan” but that “these projects have not been approved and are seeking all available incentives to proceed with any business case.” will be important.”
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