General Motors spends $7 billion on electric vehicle factories

General Motors said Tuesday that it will spend $7 billion to build a battery plant in Michigan and overhaul an existing plant outside of Detroit to begin making electric pickup trucks in 2024.

The investment will create 4,000 jobs and significantly increase GM’s electric vehicle production capacity in the United States, the company said.

“We want to have a good manufacturing facility in the Midwest,” GM president Mark Reuss said during a meeting with reporters. “Three years ago, we looked at the full potential of EVs and started planning our footprint.”

The state of Michigan is offering GM $824 million in economic incentives.

The investment plan is the auto industry’s latest move to ramp up production of electric vehicles. In December, Toyota said it had a plan build a battery factory in North Carolina is expected to employ 1,750 people.

Ford Motor overhauled a plant in Dearborn, Mich., and set it to begins production of an electric version of the F-150 . pickup this spring. Ford also plans to spend 11.4 billion dollars built two battery plants in Kentucky and a third battery plant and an electric truck plant in Tennessee.

GM there is a battery factory under construction in Ohio and Tennessee, and has retooled a factory in Detroit, where it recently began producing an electric Hummer truck. It also plans to produce electric vehicles at a plant in Ontario and another in Mexico.

GM said it aims to phase out production of gasoline-powered vehicles by 2035, but so far, Ford is leading GM in electric vehicle sales. Ford sold an electric SUV, Mustang Mach Efor over a year, and has received over 200,000 pre-orders for the electric F-150 Lightning.

Ford developed those models using battery packs developed by a supplier. GM decided to spend more time developing its own modular battery packs, which it believes will provide a cost advantage over competitors in the long run.

GM’s new Michigan battery plant, like other GM battery plants, will be a joint venture between the automaker and LG Electric. It will be built on the site of an existing factory in Lansing, at a cost of $2.6 billion that will be shared between GM and LG.

GM will also invest $4 billion to build a plant in Orion, Mich., to produce electric versions of the Chevrolet Silverado and GMC Sierra pickup trucks. The company expects to add 2,350 jobs at the Orion plant and retain another 1,000 at the plant when pickup production begins.

The factory produced the Chevrolet Bolt, an electric compact car, although production was halted for several months because of the recall that required GM and LG to replace the battery packs for all Bolts produced. since 2017.

Reuss declined to say whether GM will continue to make the Bolt as it prepares for the Orion plant to make pickup trucks.

GM expects the Orion plant and the Detroit plant, known as Factory Zero, to eventually be able to produce 600,000 full-size electric trucks a year. The company said that by the end of 2025, it plans to reach a total annual production capacity of one million electric vehicles.

GM also said it will spend $510 million to upgrade two vehicle plants in Lansing. General Motors spends $7 billion on electric vehicle factories

Fry Electronics Team

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