GM Invests $6 Billion in Michigan Electric Vehicle Project

[Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] General Motors (GM) announced that it will invest $6 billion (approximately 7.188 trillion KRW) to convert its Michigan production plant in the United States into an electric vehicle manufacturing facility and build a new battery plant, according to the Wall Street Journal (WSJ) on the 25th (local time).

GM plans to invest $4 billion to convert the Orion assembly plant on the outskirts of Detroit into an electric pickup truck production facility. Additionally, GM will build a new battery plant in Lansing, the capital of Michigan, about 1 hour and 20 minutes by car from Detroit. The new Lansing battery plant, to be built in partnership with LG Energy Solution, will receive an investment of $2.6 billion. The Lansing battery plant will be the third battery factory GM and LG Energy Solution are building in the U.S., with both companies sharing the investment costs equally.

GM also announced plans to invest approximately $500 million separately in two assembly plants near Lansing.

GM explained that it plans to cover about $6 billion of the total $7 billion investment, marking the largest single investment in the company's history.

GM Chairwoman Mary Barra had previously announced at CES 2021 in January last year that the company would invest $35 billion in the electric vehicle sector by 2025.

GM expects that upon completion of the Michigan investment plan, it will have the capacity to produce 600,000 electric pickup trucks. Earlier, GM had set a goal to become the number one electric vehicle manufacturer by achieving a production capacity of over 1 million electric vehicles.

The Orion plant is expected to produce the Chevrolet Silverado electric pickup truck, unveiled by GM earlier this month, and the GMC Sierra, scheduled for production in 2024. GM emphasized that it intends to make the Orion plant the hub for electric pickup truck production.

GM anticipates that this investment will create 4,000 jobs in Michigan.

GM's large-scale investment in Michigan, a representative Rust Belt state, contrasts with the recent trend of other automakers focusing their investments in the southern United States.

Last year, Toyota announced plans to build a battery plant in North Carolina, and Ford revealed plans to invest in three battery plants: two in Kentucky and one in Tennessee. Ford also plans to build a new electric truck plant in Memphis, Tennessee. Earlier, Volkswagen announced it would increase electric vehicle production at its Chattanooga plant in Tennessee.