GM Pours $900 Million into Michigan Plant for Electric Vehicle Shift

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General Motors is preparing a substantial investment of at least $900 million to reconfigure its auto plant in Lansing, Michigan, for the production of electric vehicles, according to Energy Secretary Jennifer Granholm’s announcement on Thursday.

During an event held in Lansing, Granholm detailed GM’s plans and disclosed that the company will receive $500 million in federal grants to assist with the conversion of the Lansing Grand River Assembly Plant. This investment marks a significant step in GM’s transition toward electric mobility, though the exact timing for the conversion has not yet been specified.

GM plans to maintain production of the Cadillac CT4 and CT5 at the Lansing facility, while expanding its capabilities to include electric vehicles in the future. The company has chosen not to provide specific details about the new EV models that will be produced at the plant at this time.

In addition to GM’s investment, the Department of Energy (DOE) has announced a total of $1.7 billion in planned grants aimed at supporting 11 manufacturing plants across eight states. This funding is part of a broader initiative to advance the development of clean energy technologies and manufacturing capabilities in the U.S.

GM’s commitment to the Lansing plant, as outlined in their application to the DOE, could see the investment rise beyond the initial $900 million figure, a source familiar with the matter revealed. The automaker had previously pledged $1.25 billion in contract talks with the United Auto Workers union for future EV production at the Lansing facility.

The company is also undertaking similar conversion projects at several other locations, including two additional plants in Michigan, as well as factories in Tennessee, Ohio, and Kansas. These efforts align with GM’s ambitious goal to cease the sale of gas-powered vehicles by 2035.

In January 2022, GM announced a collaboration with LG Energy Solution to establish a $2.6 billion battery cell manufacturing plant in Lansing. This plant is expected to commence production later this year, further cementing GM’s commitment to advancing electric vehicle technology.

Since 2020, GM has committed over $12 billion to investments aimed at developing its EV manufacturing capabilities and supply chain infrastructure across North America. This ongoing investment underscores GM’s strategic focus on transitioning to a more sustainable and electrified future in the automotive industry.