Gotion, a leading Chinese electric vehicle (EV) battery manufacturer, has chosen Illinois as the site for its new $2 billion EV lithium battery plant in the United States. This announcement was made in collaboration with Illinois Governor JB Pritzker.
The establishment of this facility represents the latest addition to a series of Chinese green energy projects in the United States. It also stands as a noteworthy development amidst a broader decline in Chinese investments in the U.S., which has occurred due to ongoing geopolitical tensions between the two nations. According to a report by the Rhodium Group, annual foreign direct investment from China into the U.S. has dwindled from $46 billion in 2016 to less than $5 billion in 2022.
The project to be located in Manteno is “the most significant new manufacturing investment in Illinois in decades,” Pritzker said in a press release. The site will cover about 150 acres; 2,600 new jobs are to be created, and production is expected to start next year, the announcement said.
Gotion’s investment will be supported by a “Reimagining Energy and Vehicles” incentive package, a new “Invest in Illinois” fund, and “other incentives” worth a total of $536 million, the statement said. Gotion’s will be the first recipient of Invest in Illinois funding following its creation in early 2023 to make Illinois more attractive when vying for large projects in highly competitive sectors like clean energy, the statement said. Gotion was further approved by local authorities for property tax abatement for 30 years.
“As part of Illinois’ commitment to build out comprehensive EV hubs and support Illinois’ workforce, the state will also fund a new manufacturing training academy nearby, as well as award an additional grant to workforce providers to expand training and prepare regional employees for the new jobs,” the statement said.
“As part of Illinois’ commitment to build out comprehensive EV hubs and support Illinois’ workforce, the state will also fund a new manufacturing training academy nearby, as well as award an additional grant to workforce providers to expand training and prepare regional employees for the new jobs,” the statement said.
“All that we see here [in Illinois] are of enormous value to us: an enabling business environment, a supportive state government for the new energy industry and their highly efficient work, as well as the prospects of the State of Illinois in the coming years,” Li said in the statement.
“When we come to Illinois, we are not building a new factory but are planning to reuse an existing one and bring it back to life again as our way of cherishing and conserving resources. We believe that Gotion’s battery technology will help to boost e-mobility in North America and the economic and trade exchanges between China and the U.S.”
Speaking at the U.S.-China Business Forum in New York on Aug. 29, Tu Le, the founder of Detroit-based auto consultancy Sino Auto Insights, said partnering between U.S. and Chinese auto industry companies that’s been controversial is nevertheless likely to advance. “It’s a little more complicated now” because of the geopolitical environment and Congressional passage of the Inflation Reduction Act, which includes incentives for onshoring, Le said.
However, the economics favour working together, he said. “If the US automakers are going to build profitable (electric) vehicles below a $50,000 price point, then they’re going need Chinese batteries,” Le said. “We don’t have the capacity. We don’t have the mining, we don’t have the refining, and we won’t have it in significant volumes through this decade,” he said.
