The electric vehicle (EV) revolution is charging ahead in the United States, boosted by new investments and job creation. China’s Gotion High-tech Co. Ltd is the latest company to join the EV push, announcing plans to build a $2 billion lithium-ion battery plant in Manteno, Illinois. This new facility will greatly expand Gotion’s production capacity to meet surging battery demand, while providing a major economic boost to the state.
Gotion Plans Massive New Battery Plant
Gotion has set its sights on the growing North American EV market. The company will construct a large-scale battery manufacturing complex in Manteno, located about 50 miles south of Chicago. The project is expected to create around 2,600 new full-time jobs for the area.[^1]
Once operational, the facility will produce 10 GWh worth of lithium-ion battery packs annually. It will also manufacture a sizeable 40 GWh of lithium-ion battery cells each year.[^1] This will significantly expand Gotion’s capabilities as it gears up for rising international demand.
Construction on the battery plant is slated to begin in 2023, with production commencing in 2024.[^1]
State Incentives Help Attract Gotion Investment
Illinois offered an attractive incentives package to help lure Gotion’s business to the state. The company is eligible for $213 million in tax breaks over the next 30 years.[^1] Additionally, the state provided $125 million in funding through its Reimagining Energy and Vehicles program.[^1]
Local authorities also approved 30 years of property tax abatements for Gotion. These benefits encouraged the company to choose Illinois for its new facility out of many potential locations.
The plant will support the state’s growing EV and high-tech manufacturing industries. State leaders have welcomed the major investment from Gotion as part of strengthening Illinois’ tech and auto sectors.[^2]
New Battery Production to Power US EV Market
The Manteno plant will give Gotion vital extra capacity to meet America’s surging appetite for EV batteries. With major automakers rolling out new electric models annually, demand is skyrocketing.
IHS Markit projects over 130 new EV models will debut in the US by 2026.[^3] Meanwhile, EV sales are estimated to jump from 3% of the US auto market in 2020 to over 20% by 2026.[^3]
Boosting domestic battery production will help accelerate EV adoption in the coming years. The Inflation Reduction Act, providing new tax credits for EVs and batteries produced in North America, is also attracting foreign battery makers like Gotion.[^4]
Gotion’s Illinois plant will enable the company to capitalize on the booming American EV market. Their expanded battery manufacturing will be crucial for powering the EV revolution nationwide.
Conclusion
Gotion’s choice to build an enormous new battery plant in Illinois highlights the state’s potential as an emerging EV hub. This facility will generate thousands of new jobs while meeting America’s growing demand for EV batteries. As the EV market takes off nationwide, Gotion is strategically powering up production capacity to remain a leader in this rapidly evolving space.
FAQs
What is the Inflation Reduction Act and how does it impact EVs?
The Inflation Reduction Act, passed in 2022, provides major new tax credits and incentives for purchasing and producing electric vehicles and batteries in North America. These credits make it more affordable for automakers and battery companies to expand EV manufacturing in the US.
How many new EV models will be available in the coming years?
Industry analysts predict over 130 new EV models will launch in the US market between now and 2026. Major automakers like GM, Ford and Stellantis are investing billions to electrify their lineups.
What percentage of US auto sales will be EVs by 2026?
EV sales are estimated to surge from around 3% of the US market in 2020 to over 20% by 2026, driven by new model launches and tax credits. This rapid growth is fueling demand for EV batteries.
Final Thoughts
Gotion’s announcement is the latest sign of the EV revolution gaining momentum across the United States. As more automakers commit to electrification and governments provide supportive policies, investments in battery production and auto manufacturing will continue ramping up. The Manteno plant exemplifies how foreign and domestic companies see enormous potential in powering America’s transition to electric mobility. This manufacturing renaissance promises to create thousands of jobs and catalyze growth across the auto industry.
Blake Steve is an accomplished writer, researcher, and technology expert specializing in product research and reviews. With an extensive background in the field, Blake has developed a keen eye for evaluating and analyzing various products across a wide range of industries.
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