Gotion, a Chinese battery manufacturer, is investing over $2 billion to establish Illinois’ Largest EV Battery Manufacturing Plant in Manteno. This project represents the largest EV battery production investment in the state’s history and is expected to significantly contribute to the green energy sector.
Developer and Investment
Gotion High-tech, a leading Chinese battery manufacturer, is spearheading this project. The company has committed to investing more than $2 billion to develop the facility, which will be situated on approximately 150 acres in Manteno. This investment underscores Gotion’s strategy to expand its footprint in North America and support the growing demand for EV batteries.
The Manteno plant will focus on the production of lithium-ion battery cells and packs, as well as energy storage system integration. Once operational, it is expected to produce 40 gigawatt-hours (GWh) of lithium-ion battery cells and 10 GWh of battery packs annually. This substantial production capacity will play a crucial role in strengthening the EV battery supply chain across North America.
The project is anticipated to create approximately 2,600 full-time jobs, offering wages at least 120% of the average salary for similar positions in Kankakee County. This influx of employment opportunities is expected to stimulate economic growth in the region, attracting ancillary businesses such as restaurants and retail outlets, thereby broadening the local tax base.
Gotion purchased the nearly 1.6 million-square-foot former Kmart distribution center in Manteno for $137.4 million. The company plans to repurpose this existing facility, aligning with sustainable practices by revitalizing unused industrial space.
Significance
To facilitate this significant investment, Gotion will receive a total incentive package valued at $536 million from the State of Illinois. This includes $213 million in tax benefits over 30 years through the Reimagining Energy and Vehicles (REV) Illinois program, contingent upon a minimum investment of $1.9 billion and the creation of 2,600 jobs. Additionally, the new Invest in Illinois fund contributes to the incentive package, reflecting the state’s commitment to becoming a hub for EV manufacturing.
Gotion is required to comply with stringent federal and state environmental regulations to ensure the safety of local residents. The Village of Manteno, in collaboration with the Manteno Fire Department and independent experts, will oversee adherence to these standards. Local officials have engaged in due diligence, including visiting Gotion’s facilities in Germany, to understand the company’s manufacturing processes and safety protocols.
Timeline
Production at the Manteno facility is slated to commence in 2024. The plant’s development is a pivotal component of Illinois’ strategy to position itself as a leader in the EV sector, contributing to the broader goal of advancing renewable energy and sustainable manufacturing practices.
In summary, Gotion’s investment in the Manteno EV battery manufacturing plant marks a significant milestone in Illinois’ economic and industrial landscape. The project’s scale, job creation potential, and alignment with green energy objectives underscore its importance to both the local community and the broader EV industry.
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