Gotion will invest some $2.36 billion to build a battery component plant in Big Rapids, Michigan. Once completed, the facility in Big Rapids is expected to produce 150,000 tons of cathode material per year, covering an area estimated to span 260 acres with plans to build two 550,000 square foot production plants along with other supporting facilities.
Additionally, the project will involve the construction of two production plants specifically dedicated to producing anodes, ultimately resulting in 50,000 tons of anode material produced per year.
Founded in 1998 and based in Hefei, China, Gotion High-tech Co. engages in the research and development, production, and sale of power lithium batteries in China and internationally. Its products include lithium iron phosphate materials and batteries, ternary materials and batteries, power battery packs, battery management systems, and energy storage battery packs for use in electric commercial vehicles, passenger vehicles, special vehicles, and hybrid vehicles.
Volkswagen is Gotion’s largest single investor. (Earlier post.)
In order to secure the project—which Michigan won out over Texas, Georgia, Kentucky, South Carolina, Illinois and Ohio—the Michigan Strategic Fund (MSF) Board approved a package of incentive support, including:
A $125-million Critical Industry Program performance-based grant through the SOAR Fund;
An MSF Designated Renaissance Zone estimated to be worth $540 million; and
A $50-million Strategic Site Readiness Program performance-based grant through the SOAR Fund will be administered by The Right Place to assist with infrastructure improvements.
In addition to MSF support, both Green Charter Township and Big Rapids Charter Township anticipate approval of a PA 198 real property tax abatement. Green Charter Township, Big Rapids Charter Township, and Mecosta County have also authorized a 30-year Renaissance Zone in support of the project.