LANSING – General Motors announced Tuesday it will spend $7 billion on four factories, including some $2.6 billion in the Lansing area to build electric vehicle batteries.

Another $4 billion will be invested to convert its existing factory in Orion Township to make electric pickups. GM also plans to spend about $500 million to upgrade its Orion Assembly, along with Factory ZERO in Detroit and Hamtramck, to manufacture the 2024 Silverado EV and GMC Sierra EV pickups.

Economists quoted by the Detroit Free Press say that, in turn, will create thousands more ancillary jobs. GM currently employs 50,631 people in Michigan.

“We are building on the positive consumer response and reservations for our recent EV launches and debuts, including GMC Hummer EV, Cadillac Lyriq, Chevrolet Equinox EV and Chevrolet Silverado EV,” said GM CEO Mary Barra in a statement. “Our plan creates the broadest EV portfolio of any automaker and further solidifies our path toward U.S. EV leadership by mid-decade.”

Michigan Gov. Gretchen Whitmer joined the Michigan Economic Development Corporation in announcing Michigan Strategic Fund approval to incentive GM in making its largest infrastructure investment in the automaker’s history. The Strategic Fund pledged to pay GM some $824 million in various grants.

“This is a historic day for our state as we secure the largest investment in GM’s history right here in Michigan, create generational opportunities for our workforce, and work together to put Michiganders first,” said Whitmer. “Today’s MSF approvals will help us continue to invest in Michigan’s economy by expanding on our leadership in the future of mobility and electric vehicles, boosting our inventory of site-ready facilities, and creating thousands of jobs for Michiganders. Together, we can continue growing our economy, creating good-paying jobs, and lowering costs for Michiganders.”

GM’s investment in Michigan includes the construction of the third Ultium battery plant in the U.S., will continue to grow the state’s global leadership in electric vehicle and advanced battery production. The combined investment will result in up to 4,000 new jobs and $6.5 billion in investment supported by the Michigan Strategic Fund.

GM plans to expand at its Orion Township facility to convert part of the site to the production of EV trucks. The company will construct several additions to the facility, renovate certain areas and make site improvements over the next three to five years, along with adding machinery, equipment, and special tooling. The project is expected to generate a total capital investment of $4 billion and create 2,300 jobs. The project will also retain 1,000 jobs.

In addition to MSF support, Orion Township approved PA 198 real property tax abatements.

Through a joint venture with LG Energy Solution, GM plans to construct a new high-volume battery cell manufacturing facility in the city of Lansing and Delta Township for the production of its Ultium batteries. The facility will include a cleanroom environment, machinery and equipment that will allow for the high-volume output necessary to produce cells at this capacity. The project is expected to generate a total capital investment of $2.5 billion and create 1,700 jobs.

To support these transformational investments, the Michigan Strategic Fund approved:

  • A Critical Industry Program grant in the amount of $600 million for the creation of up to 4,000 jobs related to the Orion Township and Ultium projects;
  • An 18-year Renewable Energy Renaissance Zone which will require a minimum investment of $1.5 billion with the potential for up to $2.5 billion, estimated to be worth $158 million;
  • A Strategic Site Readiness Program grant in the amount of $66.1 million awarded to the Lansing Economic Area Partnership (LEAP) for public infrastructure and utility upgrades.

The MEDC also authorized a State Education Tax abatement to be used in conjunction with the locally approved Orion Township abatement in support of the GM expansion. Whitmer said today’s announcement cements the auto manufacturer’s commitment to creating an all-electric future from within Michigan and grows the state’s momentum as a leader in electric vehicle and advanced automotive manufacturing.

The GM projects is among the first to be approved under the new Critical Industry Program and Strategic Site Readiness Program signed into law by Gov. Whitmer in December, competitive programs that invest in business retention and attraction to complement Michigan’s already undeniable strengths as a state.

What’s more, the Michigan Strategic Fund also approved business expansion projects by longstanding Michigan companies in Midland and Bay City that, taken together, will generate a total capital investment of at least $314 million and create or retain 880 jobs.

The Michigan Strategic Fund also provided grants to the City of Harper Woods Brownfield Redevelopment Authority totaling $4.7 million in state tax capture for the alleviation of brownfield conditions the 81-acre former Eastland Mall site. NP Eastland Commerce Center Industrial LLC is the developer.

The city of Harper Woods is supporting the project through the local portion of the brownfield work plan valued at $12,668,748 and approval of a Commercial Redevelopment Act tax abatement valued at $12.2 million. The city of Harper Woods is engaged with MEDC’s Redevelopment Ready Communities program.