U.S. Treasury Secretary Visits GM Ultium Cells Spring Hill Battery Plant7
The GM and LG Energy Solution joint venture Ultium Cells Spring Hill plant, currently under construction in Spring Hill, Tennessee, is being visited today by U.S. Treasury Secretary Janet Yellen. The visit is part of a week-long travel itinerary by Yellen and other officials to promote electric vehicle (EV) battery manufacturing and green energy.
The visit comes as the U.S. Treasury Department changed the classification of electric crossover vehicles from passenger cars to SUVs, Reuters reports. This update to vehicle classification standards raises the threshold above which electric crossovers no longer qualify for the Inflation Reduction Act’s tax credit from $55,000 to $80,000.
The practical effect will be to make the federal tax credit of up to $7,500 available for more electric crossover models, including the Cadillac Lyriq. The 2023 Lyriq, with a base price starting at $62,990 excluding the introductory $59,990 Debut Edition, previously did not qualify for the IRA tax credit, since it was classified as a GM passenger car. The 2024 Cadillac Lyriq will start at $58,590 thanks to a new entry-level Tech trim.
Now that crossovers are considered utility vehicles following the updated Treasury decision, the base MSRP of the Lyriq is well below the $80,000 eligibility threshold for its new classification. The GM electric crossover qualifies for up to $7,500 in tax credits, at least until updated guidance on production is released in March 2023 by the Treasury Department.
GM broke ground in 2021 for the Ultium Cells Spring Hill plant Treasury Secretary Janet Yellen is visiting today. Construction on the 2.8 million square-foot factory reached its millionth hour in late September 2022, with the facility expected to go into operation later in 2023. The General made an early-December 2022 announcement it will invest an extra $275 million in Ultium Cells to increase battery cell production.
The Ultium Cells Spring Hill plant will produce GM Ultium batteries once it’s operational. These batteries will go to various GM assembly plants, including the nearby GM Spring Hill Manufacturing plant. Spring Hill Manufacturing will be the site producing electric vehicles built on the GM BEV3 platform, including the Cadillac Lyriq.
Ultium Cells Spring Hill is the second GM battery plant, out of four planned, to be constructed in partnership with LG Energy Solution. The first, Ultium Cells Warren in Ohio, launched battery production on September 1st, 2022 with an initial 800-strong workforce, eventually to be expanded to 1,300 employees.
The third, Ultium Cells Lansing in Michigan is also currently under construction. The fate of the fourth EV battery plant is now uncertain after LG Energy and GM failed to reach an agreement to build it in Indiana. Despite LG’s hesitation, GM may still build a fourth plant in Northwest Indiana or some other location, and potentially not in collaboration with LG.
LG Energy appears to be taking a cautious approach to battery plant investment, while GM pushes ahead aggressively in pursuit of its plan to launch 30 new EV models worldwide by 2025.
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She should take a tour of the lithium mines and the land fills where the old batteries are dumped.
Educate…look up LICY! We should be more worried where the cell batteries are going. Also regarding mines…dont froget all those leaping from the work factories in China one year to build um the apple products but shhh dont we all forget that too. So if were going to watch watch it all and not pick and choose me thinks.
Is GM not offended by the giant cross on the roof and how it promotes Christianity?
Its ok….its upside down.
Why, because the government (we) are paying for it?
Was going to call her another bozo, but don’t want to insult Bozo the Clown.
With this huge new plant how come no solar panels on roof like you see on other automakers new plants? I thought the trend is toward Green. ???