The city council in Lansing, Michigan has unanimously approved a motion to grant tax-free status to a 529-acre plot of land that General Motors is considering constructing a new battery plant on.
According to Automotive News, this motion will make the land mostly tax-free for 18 years. The council also approved an agreement to annex the property into the city of Lansing this week for tax purposes, as the plot of land is technically located in nearby Delta Township.
Bob Trezise, CEO of the Lansing Economic Area Partnership, a local business improvement coalition, told Automotive News that construction of the new General Motors battery plant could begin as early as next year, but the automaker has still yet to make a final decision on if it will build the facility in Lansing. “As a total disclaimer, this could all be for naught,” he told the publication.
The Michigan Legislature also said this month it was working on ways to help attract new investment after Ford skipped over its home state to build new multi-billion dollar plants in Kentucky and Tennessee instead. This includes pre-approved tax incentive schemes for local municipalities such as Lansing and Delta Township.
General Motors filed an application with the city of Lansing to secure tax-exempt zoning for the project last week. The application indicated the project would cost “up to or more than,” $2.5 billion and would create roughly 750 full-time jobs when completed at the end of 2025. The records also indicate the number of employees at the plant could swell to 1,700 people once it reaches full production capacity.
The proposed Lansing battery plant would be close by the GM Lansing Delta Township Assembly plant, which currently builds the Chevy Camaro, along with the Cadillac CT4 and Cadillac CT5. This plant could therefore be poised to build battery-electric vehicles at some point in the future, with GM president Mark Reuss saying previously that it would ideally build battery plants nearby vehicle plants to reduce shipping costs.
GM spokesman Dan Flores acknowledged the automaker was “developing business cases for potential future investments in Michigan,” earlier this week, but said the company still has nothing official to announce at this time.