~ GM will create 4,000 and retain 1,000 jobs, converting GM Orion Township assembly plant to build full-size EV pickups; building Ultium’s 3rd US battery cell plant in Lansing ~
Lansing, MI — Governor Gretchen Whitmer today joined General Motors CEO Mary Barra, union officials, elected officials, and local and state leaders to announce a historic investment that will secure the automotive manufacturer’s commitment to creating an all-electric future, and 5,000 new and retained manufacturing jobs, in Michigan. The $7 billion investment includes a $4 billion investment to convert GM’s Orion Township assembly plant for the production of full-size EV pickups and up to $2.5 billion to build its third U.S. Ultium battery cell plant – a joint partnership with LG Energy Solution – in Lansing, growing the state’s global leadership in electric vehicle and advanced battery production.
The $7 billion investment in the state is the largest in the company’s history and the largest private investment project announced to date by the state – making a strong bet on Michigan’s automotive workforce and future in EV and advanced battery manufacturing.
“GM’s $7 billion investment in Michigan—the largest in their history—will create and retain 5,000 good-paying jobs and enable us to build on our legacy as the place that put the world on wheels,” said Governor Gretchen Whitmer. “When it comes to investing in Michigan, GM and I have the same philosophy: ‘Everybody In.’ Michigan’s future is bright, and I will continue working with anyone to make transformational investments in our economy, create good-paying jobs, and empower working families.”
The Michigan Strategic Fund approved support earlier today for GM’s transformational projects in Orion Township and the Lansing area, creating 4,000 new jobs and generating $6.5 billion in total capital investment. In addition to these EV-related investments in Michigan, GM also announced today it is investing more than $510 million in its two Lansing-area vehicle assembly plants to upgrade their production capabilities for near term products. Today’s announcement cements the auto manufacturer’s commitment to creating an all-electric future from within Michigan and grows the state’s momentum as a leader in electric vehicle and advanced automotive manufacturing.
“Today we are taking the next step in our continuous work to establish GM’s EV leadership by making investments in our vertically integrated battery production in the U.S., and our North American EV production capacity,” said Mary Barra, GM Chair and CEO. “These important investments would not have been possible without the strong support from the Governor, Michigan Legislature, Orion Township, the City of Lansing, Delta Township as well as our collaboration with the UAW and LG Energy Solution. These investments also create opportunities in Michigan for us to bring our employees along on our transition to an all-electric future.”
GM’s decision to expand in Michigan will have a far-reaching impact on the entire state, with the influx of jobs resulting in spinoff investments and local redevelopment opportunities. Over 20 years, more than $28.8 billion in new personal income is expected to be generated by the direct, indirect, and induced jobs this opportunity will create, much of which will be spent at local small businesses throughout the community and the state. In addition, the project has an employment multiplier of 3.8, which means that an additional 2.8 jobs in Michigan’s economy are anticipated to be created for every new direct job, due to the extensive supply chain that exists in Michigan.
The Orion assembly plant and Ultium battery cell plant projects are the first to be approved utilizing the new Critical Industry Program and Strategic Site Readiness Program signed into law by Gov. Whitmer in December. These programs were created to ensure Michigan could effectively compete for billions of dollars in investment and attract tens of thousands of jobs to bolster the state’s economy.
“This project will create new opportunities for businesses of all sizes across the state to ensure that Michigan retains its strong supplier network and provide a platform for further investment throughout Michigan. GM’s decision underscores the strength of the workforce within our state’s automotive sector and the bipartisan, Team Michigan commitment to winning the future of mobility and EV manufacturing here in Michigan,” said MEDC CEO and Michigan Strategic Fund President and Chair Quentin Messer Jr. “We appreciate GM’s continued vote of confidence in Michigan and their partnership on this historic economic win for our friends and neighbors, and are encouraged by the economic opportunity impact it will have across our state for decades to come.”
To read the full GM announcement, click here.
Today’s announcement reaffirms that as the industry shifts from the combustible engine to electric and fuel cell propelled vehicles, Michigan is poised to lead the high-tech automotive transition yet again. Advances in electric power generation and storage, autonomous vehicles, vehicle sensing, and vehicle-to-vehicle and vehicle-to-infrastructure communications are shaping the economics of mobility, with Michigan at the helm.
Learn more about why Michigan is the home for Pure Opportunity in automotive, mobility and EV growth at michiganbusiness.org/mobilitymi