On Jan. 25, GM announced that it would invest more than $7 billion in four plants in Michigan, creating 4000 new jobs and retaining 1000 jobs, significantly increasing the manufacturing capacity of batteries and electric trucks. GM said the investment was the largest single investment in its history.
Of the $7 billion investment, US $4 billion will be spent on revamping the Orion assembly plant to use General Ultium Platform to produce electric trucks. In 2024, GM will begin producing Chevrolet Silverado EV and GMC Sierra electric cars in Orion.
The announced investment also includes a $2.6 billion joint venture with LG Energy Solutions to build Ultium Cells's third cell production plant. Site preparation for the new plant will begin this summer, cell production is expected to begin at the end of 2024, and cells will be supplied to Orion and other general assembly plants.
According to GM's plan, its Detroit-Hamtramck and Orion Township will have an annual production capacity of more than 600000 electric trucks by the end of 2024; together with three other plants in Tennessee, Ontario and Mexico, its annual production capacity of North American electric vehicles will exceed 1 million by the end of 2025.
In addition to its electric vehicle-related investment in Michigan, GM has invested more than $510 million in two car assembly plants in the Lansing region to upgrade the production capacity of its recent products, including the next-generation Chevrolet Traverse and Buick enclave.
Detroit-based GM is "committed to making our hometown the center of the electric car industry," GM CEO Mary Bora said at a news conference on January 25. GM President Mark Reuss declined to disclose the subsidies offered by Michigan, but Michigan officials said the state provided $824 million in funding, in part to support the creation of 4000 GM jobs.
GM's increase in electrification has further intensified its competition with Ford for the leader of electric vehicles in North America. In January, Ford said it would have an annual production capacity of 600000 electric vehicles within two years, including 150000 Fmur150 Lightning pickups, which it hopes to become the second-largest electric vehicle maker in North America after Tesla. Last year, Ford said it and South Korean partner SK Innovation would invest more than $11 billion in new electric truck and battery plants in Tennessee and Kentucky.
However, the two companies also have a common competitor, Tesla, the current global leader in electric vehicles. Tesla's second plant in the United States is also about to open, and the company is expected to sell more than 1 million electric vehicles worldwide in 2022.
