GM to Invest $7B in EV Facilities in Bid to Catch Tesla
Jan. 28, 2022—General Motors on Tuesday announced it will invest $7 billion in four Michigan facilities, making the state its EV development "hub."
Around $4 billion will go the automaker's existing Orion Assembly, completely renovating it to become an EV pickup manufacturing facility. According to a report from the Detroit Free Press, another $2.6 billion will be used to build a new battery facility in Lansing, and the remaining money will go to upgrade two existing facilities in the Lansing area.
"This news is great for us and for Michigan, the epicenter of where we’re developing EVs," GM President Mark Reuss said. "Michigan will be the recognized hub of innovation in the U.S. for EV development and EV manufacturing.”
Per the report, GM CEO Mary Barra said the investment is the "single largest" in the company's history and will be responsible for creating 4,000 jobs while retaining an additional 1,000 employees. Economists say even more "ancillary jobs" will be created from the move.
The Orion Assembly facility will build GM's new Chevy Silverado and GMC Sierra electric pickups.
“We are building on the positive consumer response and reservations for our recent EV launches and debuts, including GMC Hummer EV, Cadillac Lyriq, Chevrolet Equinox EV and Chevrolet Silverado EV," GM CEO Mary Barra said in a statement. "Our plan creates the broadest EV portfolio of any automaker and further solidifies our path toward U.S. EV leadership by mid-decade.”
On the same day as the announcement, the Michigan Strategic Fund approved nearly $825 million in incentives to help renovate the Orion Assembly facility.