Gotion to set up $2 billion lithium battery manufacturing plant in the U.S.

China's Gotion High Tech Co ltd on Friday said the company will set up a new state-of-the-art $2 billion lithium battery manufacturing plant in Manteno, Illinois.

Covering about 150 acres, on completion, the Manteno facility will produce 10 GWh of lithium-ion battery packs and 40 GWh of lithium-ion battery cells, which will strengthen the US EV battery supply chain. It will produce lithium-ion battery cells, battery packs, and energy storage systems.

"Energy and environmental protection are our common challenges. To address them, solar power, wind, and energy storage systems are becoming the backbone of a new energy system and accelerate the revolution in the global energy landscape," said Li Zhen, Chairman of Gotion High-tech.

"We believe that Gotion's battery technology will help to boost e-mobility in North America and the economic and trade exchanges between China and the U.S."

The decision to locate the electric vehicle battery manufacturing facility in Illinois was bolstered by the REV Illinois (Reimagining Energy and Vehicles) incentive package and the new Invest in Illinois fund which mark the State's efforts to encourage the growth of EV ecosystem and battery supply chain in the region.

With the latest partnership, Gotion will be the first recipient of the Invest in Illinois fund-- receiving $125 million in capital funding. The fund was established in early 2023 to make Illinois an attractive destination for large projects in competitive sectors like clean energy.

Gotion's total incentive package from the State of Illinois, which includes REV, Invest in Illinois, and other incentives, is valued at $536 million. Through REV, Gotion is eligible to receive tax benefits totaling $213 million over 30 years.

The EV battery manufacturing plant is expected to begin production in 2024.