GUANGZHOU -- China's Gotion High-tech will build a plant for electric vehicle battery materials in the U.S. state of Michigan to supply a battery factory it is planning nearby, aiming to establish a foothold in the subsidy-backed American market.
The battery maker will invest $2.36 billion in the plant, with plans to complete construction by the end of 2031. The site will produce anode and cathode materials for lithium-ion batteries. The plans were announced on Wednesday.
Gotion, which secured 1.1 square kilometers for the plant, has not disclosed the planned production capacity. Some funding will be raised from third parties, and Michigan is expected to provide subsidies based on the company's progress.
Gotion also is investing $2 billion to build an electric vehicle battery factory in the nearby state of Illinois, looking to start operations in 2024.
The company is focusing on its U.S. business because of the country's 2022 Inflation Reduction Act, which offers incentives for EVs and batteries manufactured in North America.
Consumers can receive tax incentives on an EV purchase if 50% of the vehicle's battery components are manufactured and assembled in North America. Gotion aims to increase local production, including battery materials, and supply the incentive-eligible batteries to automakers.
Gotion launched in 2006. It ranked ninth in global market share for EV batteries and fifth in the Chinese market from January to August this year, South Korea's SNE Research reports.
The company has received investment from Germany's Volkswagen and is expanding overseas, starting battery production in Germany and building a factory in Vietnam. In battery materials, it has announced plans to build a lithium carbonate refining plant in Argentina
