GM to Invest $900M at Michigan Plant for Electric Vehicle Production
US auto giant, General Motors (GM) is set to invest a minimum of $900 million in retooling its Lansing, Michigan factory to manufacture electric vehicles (EVs). This announcement came as a part of a larger reveal by the U.S. Energy Secretary, Jennifer Granholm, during an event in Lansing on Thursday.
A Boost to EV Production
According to the specifications of GM’s filing with the Department of Energy (DOE), the company plans a minimum investment of $900 million, but insiders suggest that the final figure could surpass this amount. Furthermore, the U.S. government will contribute $500 million in grants towards the transformation of GM’s Lansing Grand River Assembly Plant into an EV production hub. The timeline for this transition, however, remains undisclosed.
For now, GM has shared few details regarding the planned EV models to be produced in Lansing. Nonetheless, the assembly plant will continue to manufacture the Cadillac CT4 and CT5. This announcement comes in the wake of a broader shift towards electric in GM’s production approach, with the automaker committed to phasing out gasoline-powered vehicles by 2035.
Impulsive Electric Growth
Indeed, GM has demonstrated serious intent towards the establishment of an electric future. In 2022, the automaker was involved in a joint venture with LG Energy Solution with the goal of building a $2.6 billion battery cell manufacturing plant, also in Lansing. This facility is scheduled to commence production later in the year.
The recent announcements reflect GM’s immense investment in the burgeoning EV sector. Since 2020, the Detroit-headquartered multinational has committed more than $12 billion dollars towards the development of its North American EV manufacturing and supply chain sectors.
EVs: The Future of the Auto Industry
It’s not just GM who is investing in the future of EVs. The Department of Energy announced plans to award $1.7 billion in grants spread across 11 plants in eight states, marking a communal shift towards a sustainable and electric future. According to the United Auto Workers union, the Lansing plant alone will receive $1.25 billion for future EV operations, corroborating GM’s commitment to electric vehicle production.
The commitment from automakers, with support from the government, to invest in electric vehicle infrastructure comes amid a global push to phase out fossil fuel-powered vehicles for the sake of environmental sustainability. These plans also synch with the Biden administration’s objective of boosting U.S. EV sales, which will shift Americans away from gasoline-powered vehicles and reduce the country’s carbon footprint.
With the continuous growth and evolution of the automotive sector, major auto manufacturers like General Motors show that they are ready to embrace the revolutionary transition to electric vehicles, signaling exciting times ahead for customers as well as the global auto industry.
