China-based battery maker Gotion High-tech took another step forward to expand in the US. The company will establish a battery plant in Manteno, Illinois, in response to the growing market. The facility is slated to start production next year.
Illinois Governor J. B. Pritzker announced the project with Gotion on September 8. According to a statement, the total investment will reach US$2 billion, the largest EV battery production investment in Illinois to date.
The plant will produce lithium-ion battery cells and packs, integrating energy storage systems. When completed, it is expected to produce 10GWh of battery packs and 40GWh of cells annually. Production is set to begin in 2024.
Li Zhen, chairman of Gotion High-tech, said in the announcement that the company plans to reuse an existing factory in Illinois rather than build a new one. He also said Gotion's battery technology will help boost e-mobility in North America and the economic and trade exchanges between China and the US.
The announcement came after Gotion's executive said in May that the company was exploring sites in the US. CnEVPost reported that Ray Chen, Gotion's vice president of international operations, said it is necessary to establish a plant in the US due to the Inflation Reduction Act (IRA). The company aims to capture significant growth in the US and European battery markets from 2025 to 2027.
Gotion's Illinois plant will create 2,600 new jobs locally, according to the state government. The state offers an incentive package of US$536 million to the battery maker, which also will enjoy property tax abatement for 30 years.
Backed by Volkswagen, Gotion is one of the top 10 EV battery manufacturers in the world. According to South Korea-based SNE Research, Gotion achieved 7.8GWh in global EV battery installation from January to July 2023. Its market share was 2.1%.
Michigan State Government announced in October 2022 that Gotion will build four production facilities in the northern part of the state to produce cathode and anode materials. Materials made in Michigan will likely supply Gotion's Illinois battery plant.
