Chinese battery manufacturer Gotion High-Tech [002074:CH] plans to establish a USD2bn electric vehicle (EV) lithium battery manufacturing plant in the state of Illinois, as reported by the South China Morning Post on September 9. The factory is scheduled to begin operations next year and will focus on the production of lithium-ion battery cells, battery packs, and energy storage systems. Once completed, the plant is expected to have the capacity to produce 10 gigawatt-hours (GWh) of lithium-ion battery packs and 40 GWh of lithium-ion battery cells. Illinois Governor J.B. Pritzker has stated that Gotion’s new facility will create 2,600 jobs, marking it as the “most significant new manufacturing investment in Illinois in decades.”

The new battery factory by Gotion is set to benefit from substantial state incentives totaling USD526m, including USD213m in tax benefits over 30 years, USD125m in funding from the state’s Reimagining Energy and Vehicles incentive package, and a 30-year property tax abatement. Illinois is one of several states offering incentives to attract investments in green industries such as EVs, batteries, and clean energy projects. These incentives, combined with tax credits and federal grants provided under the Inflation Reduction Act (IRA), have attracted numerous global manufacturers. Recently, Chinese photovoltaic material producer Trina Solar [688599:CH] also unveiled a plan to build a USD200m solar panel factory in Texas.

Sources:

https://www.scmp.com/business/china-business/article/3233975/chinese-ev-battery-maker-gotion-high-tech-picks-illinois-us2-billion-factory-starts-production-2024

https://www.reuters.com/business/autos-transportation/chinas-gotion-set-up-2-bln-lithium-battery-plant-illinois-2023-09-08/

https://www.ajot.com/news/chinese-solar-supplier-trina-plans-200-million-us-factory