According to Reuters, the Illinois state government announced that Gotion Inc, a subsidiary of Chinese battery manufacturer Gotion High-Tech, will invest $2 billion (about 14.7 billion yuan) to build a super battery factory in Manteno, Kankakee County, Illinois.
The plant, which reportedly covers an area of about 150 acres, is expected to produce 40GWh of lithium-ion cells per year, as well as battery packs and energy storage systems. The plant, refurbished in two phases on top of an existing old factory, is expected to start production as early as 2024. The battery products produced at the plant will supply local electric vehicle manufacturers in the United States and improve the lithium battery industry chain in North America.
According to Illinois Governor J.B. Pritzker, Gotion High-Tech's factory will create 2,600 high-tech jobs for the state and is the "most valuable new manufacturing investment in the state in decades." The Illinois state government is also expected to provide $546 million (about 4 billion yuan) in subsidies for Gotion High-Tech.
Not only that, Gotion High-Tech will also receive $213 million in tax breaks over the next 30 years.
"2,600 new jobs, a $2 billion super factory, and the most significant new manufacturing investment in Illinois in decades are the latest proof that we are entering a new stage. Illinois is rising, and we are open to business investment." Pritzker praised Gotion High-Tech at the groundbreaking ceremony.
Gotion High-Tech Chairman Li Zhen mentioned that Gotion High-Tech did not build a modern factory locally but renovated an ancient one to "restore the past glory here, which is our respect and cherish for resources."
"We firmly believe that Gotion's battery manufacturing technology will add strength to the electrification of automobiles in North America and the economic and trade exchanges between China and the United States."
Illinois's super battery factory project is Gotion High-Tech's second significant investment in the United States after announcing a $2.4 billion investment in October last year to build a battery material factory in northern Michigan. The Michigan battery materials plant consists of three components, including a plant capable of producing 150,000 tons of cathode material per year for lithium-ion batteries and two plants with a total annual production capacity of 100,000 tons of anode material. On June 13 of this year, after about a year of review, the Michigan plant received approval from the U.S. Department of Treasury's Foreign Investment Board.
Previously, Michigan offered Gotion High-Tech a $715 million incentive package, which included $540 million in 30-year tax relief and two subsidies totaling $175 million.
Xinling Information Research believes that as an old-fashioned business, Gotion High-Tech has solid technical reserves and large-scale production experience in power battery production. The landing of this overseas project will accelerate the Company's expansion and supply capacity in the North American market on the one hand and will help facilitate the global penetration of lithium iron phosphate batteries on the other hand.
Godot High-Tech has eight research and development centers in Hefei, Anhui Province, China, Hefei, Shanghai, Silicon Valley, Cleveland, Göttingen, Pune, and Singapore South.
On the technical front, Gotion High-Tech specializes in lithium iron phosphate batteries and has a mature capacity for lithium iron phosphate cathode material production. In May this year, Gotion High-Tech released the L600 Qichen lithium manganese iron phosphate battery cell/battery pack with a mass-energy density of 240Wh/kg, a volume energy density of 525Wh/L, an average temperature cycle of 4000 cycles, a high-temperature cycle of 1800 cycles, and an 18-minute fast charge. In particular, the L600 Qichen is also the first battery to achieve a range of 1,000 km without using a triple battery system.
According to Going High-Tech's semi-annual report released at the end of August 2023, the Company's revenue increased by 76.42 percent year-on-year to 15.239 billion yuan; net profit attributable to mothers was RMB209 million, up 223.75 percent year-on-year. In addition, Gotion High-Tech's overseas business generated revenue of 3.062 billion yuan in the first half of 2023, up 296.74 percent year-on-year. According to SNE RESEARCH, a global consulting firm, Gotion High-Tech ranked ninth in the world with 7.8 GWh of global power battery installations from January to July, up 10.6 percent year-on-year.
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