General Motors (GM) has committed to investing at least $900 million to retool its Lansing, Michigan auto plant for the production of electric vehicles (EVs), Energy Secretary Jennifer Granholm revealed at an event in Lansing.
This announcement coincides with a larger government initiative where GM will receive $500 million in grants to support the conversion of its Lansing Grand River Assembly Plant to EV production at an unspecified future date.
General Motors has delivered 21,930 electric vehicles during the second-quarter of 2024, up 34 percent over Q1 and 40 percent year-over-year.
Currently, GM has not disclosed specific details about the models to be produced at the Lansing plant, but the facility will continue manufacturing the Cadillac CT4 and CT5. The Department of Energy (DOE) has allocated a total of $1.7 billion in grants for 11 plants across eight states to support similar initiatives.
GM’s application to the DOE indicated a planned investment of at least $900 million, though the final figure may exceed this amount, Reuters news report said. In previous contract talks, the United Auto Workers union reported that GM had pledged to invest $1.25 billion in the Lansing plant for future EV production.
This investment is part of GM’s strategy to transition its manufacturing capabilities from internal combustion engine vehicles to electric vehicles. The company aims to cease the sale of gas-powered vehicles by 2035. GM has already announced plans to convert several other plants in Michigan, Tennessee, Ohio, and Kansas to EV production.
In addition, GM is collaborating with LG Energy Solution to build a $2.6 billion battery cell manufacturing plant in Lansing, which is expected to commence production later this year. Since 2020, GM has committed over $12 billion to EV manufacturing and supply chain development across North America.