The plant will focus on lithium-ion battery cell and pack production and energy storage system integration, and is expected to produce 10 GWh battery packs and 40 GWh cells when completed.
(Image credit: Gotion High-tech)
Volkswagen-backed Chinese power battery giant Gotion High-tech will build an electric vehicle battery production facility in the US, where the company also previously announced plans to build a battery materials facility.
Gotion will build a $2 billion gigafactory in Illinois, which is expected to begin production in 2024, Governor JB Pritzker said in a September 8 statement.
The plant, which will focus on lithium-ion cells, battery pack production and energy storage system integration, is expected to produce 10 GWh of battery packs and 40 GWh of battery cells when completed and will help to strengthen the US EV battery supply chain, the statement said.
Gotion's facility, which is located in Kankakee County, will create 2,600 full-time jobs paying at least 120 percent of the county's average wage for similar job categories.
"With 2,600 new jobs, a $2 billion gigafactory, and the most significant new manufacturing investment in Illinois in decades -- it's the most recent proof that we are in a new paradigm," Pritzker said.
Gotion will receive support from the state of Illinois for the construction of the facility, with a total incentive package valued at $536 million, according to the statement.
This includes tax incentives totaling $213 million over 30 years, 30 years of property tax abatement approved by the local government. Gotion will also be the first recipient of Invest in Illinois funding in the amount of $125 million in capital funding to the company.
"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," said Li Zhen, chairman of Gotion.
Gotion is not building a new plant, but plans to reuse an existing one, Li said, adding that Gotion believes its battery technology will help to boost e-mobility in North America and the economic and trade exchanges between China and the US.
This is the latest move by Gotion to increase its bet on the US market.
In October 2022, Michigan Governor Gretchen Whitmer said in a statement that Gotion chose Big Rapids to build its $2.36 billion battery component manufacturing plant.
Once completed, Gotion expects to produce 150,000 tons of cathode material annually at the Michigan facility, with plans for two 550,000-square-foot manufacturing plants and other supporting facilities.
In addition, the project will involve the construction of two production plants dedicated to anode production, ultimately resulting in the production of 50,000 tons of anode material per year.
Gotion is one of the world's largest power battery makers, with 7.8 GWh of power batteries installed in January-July, according to data released on September 5 by SNE Research, a South Korean market research firm.
The company ranked ninth with a global share of 2.1 percent in January-July, according to SNE Research.
Besides Gotion, Eve Energy, another Chinese lithium battery maker, recently announced plans in the US to serve local customers.
Eve Energy US Holding LLC, a subsidiary of Eve Energy, plans to set up a joint venture in the US with Electrified Power, Daimler Truck, and Paccar Inc, which will invest in battery production capacity, according to the battery maker's September 6 exchange announcement.
Batteries produced by the joint venture will be used primarily in selected North American commercial vehicle segments, and Eve Energy's partners will be the joint venture's primary customers, purchasing all or a substantial portion of the product.
Eve Energy's installed power battery volume in the January-July period was 8.0 GWh, placing it eighth globally with a 2.2 percent share.