Lordstown has approved a 15-year, 75% tax abatement for General Motors to build its new battery manufacturing facility in the region.
The automaker announced its plans to build the new battery plant last December, joining forces with South Korean battery supplier LG Chem on the project. GM and LG Chem will invest a total of $2.3 billion combined in the facility through a new, equally owned joint-venture company. The plant is expected to employ around 1,100 people when up and running at full capacity.
Chevrolet Bolt EV battery pack
The tax abatement was previously pending approval from the village of Lordstown. As local newspaper The Vindicator reports, any time the village is involved in a tax abatement request of more than 50 percent, it is required to enter into an income tax sharing agreement with local schools. Lordstown Mayor Arno Hill asked the school district to not take any income tax as part of the sharing agreement, though, as the city lost a major revenue stream due to the closure of Lordstown Assembly, leaving it hurting for cash. The school district may receive up to $600,000 as part of the sharing agreement. It has not yet made a decision with regard to the tax sharing plan, though the village approved the abatement this week anyways.
“What we had to get done and needed to get done for General Motors, we did,” Mayor Hill said on Tuesday.
GM battery production in Brownstown, MI.
GM said the Northeast Ohio and the Mahoning Valley area is set to transform into “a major hub for technology and electric vehicle manufacturing,” in the coming years when it first announced the battery plant late last year. GM also sold Lordstown Assembly to the newly created Lordstown Motor Company, which will build its new Endurance electric pickup truck at the facility, giving the area even more electric vehicle manufacturing presence.
Lordstown Endurance pickup
As we reported previously, groundbreaking on the new GM and LG Chem plant is expected to begin in mid-2020. The plant should be up and running by mid-2021 at the latest, as GM’s electric pickup truck is set to start rolling off the assembly line at Detroit-Hamtramck in the fall of that year.
Subscribe to GM Authority for more GM electric vehicle news, Lordstown Assembly news and around-the-clock GM news coverage.
Source: WTOP/The Vindicator
Comments
assuming this accurate, here is gm’s upcoming EV vehicles :
https://www.automobilemag.com/news/gm-12-electric-vehicles-coming-cadillac-chevy-gmc-buick/
by 2023 :
Ride-sharing driverless minivan.
Regular minivan with a steering wheel, similar in size and purpose to the Volkswagen ID Buzz.
Cadillac compact sedan/hatchback to target the Tesla Model 3.
Chevrolet Bolt compact hatchback replacement.
Small Chevrolet or Buick crossover, as replacements for the Trax and Encore. (Both brands seem likely to us, considering the popularity of the Buick Encore. )
Compact CUV about the size of a Chevy Equinox, but with a lower roof for Chevy and/or Buick.
Compact luxury SUV, a Cadillac version of number six.
Large three-row SUV, replacing or complementing Chevy Traverse and/or GMC Acadia.
Luxury three-row Cadillac SUV, replacing or complementing XT6 and/or Escalade. [Considering the new-for-2021 Cadillac Escalade’s margins will help pay for all these BEVs, we’d bet on this model to be more like the XT6 than the ‘Slade.]
Wooooooooow. Ohio pulled off all the stops for GM.
GM better have a packed House of High Paying UAW Workers for this sweet setup.
GM now has Zero excuses not to execute great EV Vehicles.
Rep Tim Ryan in this area is in major trouble. The people here have really turned on him for so many years of inaction.
The battery plant is not going to save him.
Few here expect the Truck to make it but the battery plant is welcomed, the only yh8ng to save the truck is if someone with money buys it like a larger auto mfg. .
@C8.R
I think you will be pleasantly surprised on how well the future GM EV Pickup Trucks will sell.
Just for a Point of Reference…Tesla Cybertruck already has 550,000 Pre-Orders.
People are Super Excited for EV Trucks as they realize just how much insane amounts of money they will be able to save.
Absolutely disgusting that GM closes its second assembly plant in the USA while adding new products to its Mexico operations. And then getting a tax break for a new plant that has been planned for over 5 years.
Second largest plant in the USA
I think you will see this happen a lot more often in the Future. EV Plants and ICE Plants are not similar at all.
Hopefully it will go down a little different than what GM pulled though. Dying to find out how many UAW Workers will be at the new Giga Plant.
Pay a couple bucks an hour over the average factory wage and get a fat tax break and the rest of the local taxpayers pick up the bill. the new normal in america. If I was looking to hire a bunch of people I guess I would send out a mass e-mail and see who comes up with biggest pile of corporate welfare
@budlar
Lets be a little fair to Lordstown. GM pays UAW Members way more than just a couple of dollars more.
Working for a UAW Plant rather than a non Union Plant is life Changing.
Watch a Documentary called American Factory to see just how different it truly is.