On January 25, GM announced that it will invest more than $7 billion in four plants in Michigan, creating 4,000 new jobs and retaining 1,000 jobs, significantly increasing the manufacturing capacity of batteries and electric trucks. GM said the investment was the largest single investment in its history.
Image source: General Motors
Of the $7 billion investment, $4 billion will be used to retrofit the Orion assembly plant to produce electric trucks using the universal Ultium Platform. In 2024, GM will begin production of Chevrolet Silverado EVs and GMC Sierra electric vehicles in Orion.
Ultium Cells; Image credit: General Motors
The announced investment also includes a $2.6 billion joint venture with LG Energy Solutions to build Ultium Cells' third cell production plant. Site preparations for the new plant will begin this summer, cell production is expected to begin by the end of 2024, and batteries will be supplied to Orion and other general assembly plants.
According to GM's plan, its Detroit-Hamtramck and Orion Township can have an annual electric truck capacity of more than 600,000 units by the end of 2024; with three other plants in Tennessee, Ontario and Mexico, its annual capacity of electric vehicles in North America could exceed 1 million by the end of 2025.
In addition to electric vehicle-related investments in Michigan, GM has also invested more than $510 million in two auto assembly plants in the Lansing area to upgrade production capacity for its recent products, including next-generation Chevrolet Traderse and Buick Enclave.
On Jan. 25, GM CEO Mary Borah said at a news conference that Detroit-based GM is "committed to making our hometown a hub for the electric vehicle industry." GM President Mark Reuss declined to disclose the subsidies provided by Michigan, but Michigan officials said the state provided $824 million in funding, in part to support GM's 4,000 new jobs.
GM's increased electrification has further intensified its rivalry with Ford for the north American electric vehicle leader. In January, Ford motor said its annual electric vehicle production capacity would reach 600,000 units in two years, including 150,000 F-150 Lightning pickups, hoping to become the second largest electric vehicle manufacturer in North America after Tesla. Last year, Ford said it would invest more than $11 billion with South Korean partner SK Innovation in Tennessee and Kentucky to build new electric truck and battery plants.
But the two companies also have a common competitor, Tesla, the current global leader in electric vehicles. Tesla's second plant in the U.S. is also about to open, and the company's global electric vehicle sales are expected to exceed 1 million in 2022.