GM is set to announce two separate major investments in its Orion and Delta Township Assembly plants on January 25th that will total $6.5 billion.
According to Automotive News, the investment in Orion Assembly would help convert the plant to produce electric vehicles and set up a new battery assembly line within the facility. The Lansing investment, meanwhile, would go toward a new Ultium battery cell production facility, which will be set up in partnership with the automaker’s battery partner, LG Energy Solution.
City council in both Lansing and Orion Township previously approved tax abatements for the two GM projects. In a statement sent to Automotive News last week, GM spokesman Dan Flores said the company was thankful for the support it has received from the two townships, but said the proposed projects are still under consideration and have yet to receive final approval.
Michigan Governor Gretchen Whitmer previously passed a $1.48 billion spending plan intended to attract new economic development after Ford skipped over the state to build its new EV and battery plants elsewhere in the U.S. Some of this spending plan money is expected to be used to grant tax-exempt status to the GM battery plant in Lansing.
GM President Mark Reuss said previously the automaker would be interested in building a new battery plant in Michigan, as the facility would be situated close to existing GM vehicle plants, such as Factory Zero in Detroit-Hamtramck.
“If you look at where our plants are, our regular assembly plants for electric vehicles, there’s a big component of transportation of cells and packs to put into cars that are built in our assembly plants,” Reuss said. “So we’d like to lessen that transportation cost.”
GM is expected to make an official announcement on its anticipated new Michigan investments on Tuesday.