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Governor Approves Funds for $2.3 Billion Battery Component Facility in Big Rapids

Oct 06, 2022

Manufacturing Facility Will Create More Than 2,300 New High-Wage Jobs!

As part of a series of electric vehicle battery investments made Oct. 5, Gov. Gretchen Whitmer joined the Michigan Economic Development Corporation in announcing Michigan Strategic Fund (MSF) support for a transformational investment by the global battery company Gotion, which has chosen to build its battery component manufacturing facility in Big Rapids.   

 

“Gotion’s $2.36 billion investment creating 2,350 good-paying jobs in Big Rapids is the biggest ever economic development project in Northern Michigan and will shore up our status as the global hub of mobility and electrification,” said Whitmer. “I am proud that Republicans and Democrats worked across the aisle to build up our economic development toolkit and empowered Michigan to compete for every project and every job. Together, we will continue winning investments in this space and become the preeminent destination for electric vehicle and mobility companies. We will work with anyone and compete with everyone to keep bringing supply chains of batteries, chips, and electric vehicles home to Michigan.” 

 

“We are thrilled to congratulate the Gotion team on choosing Michigan as their American home for opportunity! Team Michigan continues to out-hustle and out-compete to ensure every global company considering their future expansion opportunities can see their future here in our state, just like Gotion does,” said Quentin L. Messer Jr., CEO of MEDC and president and chair of the MSF board. “We are grateful for the support and collaboration from our multiple local partners at the city and country levels, our partners at the Right Place and Consumers Energy, in particular, and appreciate the bipartisan support of the legislature to bring these good-paying jobs and economic opportunities to our friends and neighbors both here in Big Rapids and throughout the region.” 

 

Founded in 1998, Gotion High-tech Co. engages in the research and development, production, and sale of power lithium batteries internationally. Its products include lithium iron phosphate materials and batteries, ternary materials and batteries, power battery packs, battery management systems, and energy storage battery packs for use in electric commercial vehicles, passenger vehicles, special vehicles, and hybrid vehicles. Gotion also offers high-voltage electrical appliances, switchgear equipment, electrical digital equipment, intelligent distribution network equipment, serialized transformers, transformers, circuit breakers, integrated charging piles, on-board chargers, and energy storage cabinets for use in thermal power, hydropower, nuclear power, wind power, metallurgy, railway and other industries. 

 

Gotion was incorporated in California in 2014 and was focused on research and development activities in Fremont, California as well as Cleveland, Ohio. Now, future operations, including this project, will focus on establishing production capacity for the United States. 

 

“We are thankful to the Big Rapids community, State of Michigan and all who have supported us in getting the project to this important milestone. We are dedicated to bringing world class lithium battery production to North America and delivering high-quality products to our customers in a timely fashion. We look forward to our continued partnership to ensure a smooth launch,” said Chuck Thelen, vice president of Gotion Global. 

 

The MSF board approved support that will enable up to $2.364 billion investment in Michigan by Gotion creating up to 2,350 new jobs in Big Rapids and the surrounding area, to serve increasing demand in the battery production industry. Gotion will initiate a multi-phase project in Big Rapids where it will build a battery components manufacturing facility to serve a growing customer base throughout North America and globally. 

 

Once completed, the facility in Big Rapids is expected to produce 150,000 tons of cathode material per year, covering an area estimated to span 260 acres with plans to build two 550,000-square-foot production plants along with other supporting facilities. Additionally, the project will involve the construction of two production plants specifically dedicated to producing anodes, ultimately resulting in 50,000 tons of anode material produced per year. 

 

“We are proud to partner with Gotion, Governor Whitmer, the Right Place and MEDC to support this once-in-a-generation opportunity for Big Rapids to bring more success and prosperity for Michigan,” said Garrick Rochow, president and CEO of Consumers Energy. “Consumers Energy plays a pivotal role in the economic development success of this project providing a competitive electric rate to attract this investment and a unique partnership ensuring high reliability, not only for Gotion, but for the entire Big Rapids region. We are also thrilled to partner with the company to deliver on their commitment to have 100 percent renewable energy powering their facility which aligns with our strategic vision through our Clean Energy Plan.” 

 

In order to secure the project, which Michigan was selected over Texas, Georgia, Kentucky, South Carolina, Illinois and Ohio, the MSF board approved a package of incentive support, including: 

  • A $125 million Critical Industry Program performance-based grant through the SOAR Fund. 
  • An MSF Designated Renaissance Zone estimated to be worth $540 million. 
  • A $50 million Strategic Site Readiness Program performance-based grant through the SOAR Fund will be administered by the Right Place to assist with infrastructure improvements. 

 

In addition to MSF support, both Green and Big Rapids charter townships anticipate approval of a PA 198 real property tax abatement. The two township boards and the Mecosta County Commission have authorized a 30-year Renaissance Zone in support of the project. 

 

“This project has the potential to provide great jobs to multiple generations of our citizens,” said Mecosta County Administrator Paul Bullock. “Citizens who will not have to leave our community for this type of opportunity, but who will be able to stay, grow and enrich our community through their presence.” 

 

“The Right Place is honored to have played a role in bringing this transformational project to the Big Rapids area," said Brent Case, vice president for business attraction at the Right Place. “The location and community have been prepared for an opportunity like this to utilize the infrastructure, locally trained talent pool and outstanding resources from Ferris State University. We are well on our way to positioning the region at the center of West Michigan’s growing mobility and EV sector.” 

 

It is anticipated the influx of jobs will result in spin-off investments and redevelopment opportunities. More than $11.5 billion in new personal income is expected to be generated by the direct, indirect and induced jobs that this opportunity will create during a 20-year period. 

 

“We are excited at the opportunity to partner with Gotion, our municipal leaders and our economic development partners on this once-in-a-century project that will have a significant impact for both the Big Rapids region and for Ferris State University. Gotion has made it clear that Ferris State University will be a strong partner in this effort for many years to come, and we are well prepared to do so,” said Ferris State University President Bill Pink. “While we have not yet reached the finish line, the board approval this morning has moved us one step closer to a collaboration that will positively impact and enhance our region and state as a whole. I am excited about this opportunity to advance our region, the city of Big Rapids and our great university!” 

Gov. Gretchen Whitmer approves incentives for the Gotion battery manufacturing facility to come to the Big Rapids area. She is surrounded by representatives from Ferris State University, the Right Place, MEDC, Big Rapids Charter Township and Gotion, among others. Incentives were finalized by the governor at Ferris' Kendal College of Art and Design in Grand Rapids. (Courtesy photo)

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