By Greg Gao
(JW Insights) Oct 13 -- Chinese lithium-ion battery manufacturer Gotion High-Tech announced its plans to establish a lithium battery project in Illinois, US and has authorized its wholly-owned subsidiary, Gotion, Inc., to sign relevant agreements with the Illinois government and other third parties on October 11.
The main contents of the aforementioned agreement include tax incentives provided by the Illinois government for the project, based on the REV subsidy law previously passed for new energy and electric vehicle companies. The final investment amount and subsidy will depend on the actual investment, according to the company’s announcement.
Currently, Gotion, Inc. has completed signing agreements for the purchase of real estate assets, such as land and factory buildings, for this project. However, the investment amount has not been finalized. According to previous information on the official website of the Illinois government, the expected investment is approximately $2 billion. This marks Gotion High-Tech’s second investment in the United States, following the $2.4 billion plan for a battery factory in Michigan.
Gotion High-Tech stated that the project aims to meet the growing demand in North America’s electric vehicle and energy storage battery market. It will deepen its cooperation with long-term strategic customers, rapidly establish localized manufacturing capabilities, and further enhance the company’s international layout.
The project will have battery manufacturing as its core business and will collaborate with regional raw material suppliers to achieve local independent supply, meeting the company’s future business development and market expansion needs in alignment with its strategic development plan.
The US Inflation Reduction Act and the subsequent regulations will encourage and support the localization of the lithium battery supply chain through policies such as tax incentives. Gotion High-Tech expects to benefit from this legislation. However, due to geopolitical changes and trade protection, there remains some uncertainty about the implementation and market prospects of this project, according to the Chinese battery giant.
Established in 1995 and headquartered in Hefei, eastern China’s Anhui Province, Gotion High-tech focuses on power battery systems, energy storage battery systems, and power transmission and distribution. It has already completed several energy storage projects both in China and overseas.
Since 2020, Gotion has started cooperation with Volkswagen Group. In 2022, it officially became a battery supplier for Volkswagen in China, providing standard battery cells, including lithium iron phosphate and ternary lithium.
