Chinese electric vehicle (EV) battery provider Gotion High-Tech [002074:CH] will spend USD2.36bn to develop a battery material production factory in Michigan to extend its footprint in North America, as reported by Caixin Glocal on October 7. According to a statement from the Michigan state government, the battery manufacturer would develop four production sites in northern Michigan. When finished, the production facilities will have an annual capacity of 150,000 tons of cathode material and 50,000 tons of anode material for lithium-ion batteries. Gotion High-Tech intends to receive a total of USD175m in financial incentives and has been designated a tax-free property for 30 years, valued at USD540m.

Founded in 1995, Gotion High-Tech specializes in the production of EV power lithium batteries. Volkswagen[VOW:GR] now owns 24.77% of the Chinese company. According to global information agency SNE research, Gotion High-Tech’s installed power battery capacity was around 8.4 gigawatt-hours (GWh) globally from January to August 2022, ranking eighth among global battery makers. To strengthen its worldwide competitiveness, the Volkswagen-backed battery company is expanding outside of China. It became the first Chinese battery business to debut on the SIX Swiss Exchange in July, raising USD685m in the process. Before that, it announced a battery manufacturing project in Germany with an annual capacity of 18 GWh.

Sources:

https://www.caixinglobal.com/2022-10-07/chinas-gotion-plans-236-billion-battery-material-plant-in-michigan-101948376.html

https://finance.sina.com.cn/tech/it/2022-10-08/doc-imqmmthc0141370.shtml

https://laoyaoba.com/n/834317