Will GM’s $7 bn EV investment in Michigan take on Ford, Tesla

GM CEO on Michigan investment

General Motors said it will make an investment of $7 billion in Michigan, mainly aimed at enhancing production of full-size electric pickups.

Rival Ford Motor is also aiming for supremacy in electric vehicle (EV) business in North America.

The current leader Tesla will open a second U.S. plant in Austin, Texas, and is on pace to sell more than 1 million electric vehicles globally in 2022.

GM said its Detroit-Hamtramck and Orion Township plants will build more than 600,000 electric trucks a year by late 2024. GM’s three other plants in Tennessee, Ontario and Mexico will be boosting the total North America EV production capacity to more than a million units by late 2025.

In January, Ford said it will have the capacity to build 600,000 electric vehicles, including 150,000 F-150 Lightning pickups, within 24 months, when it aims to become the clear No. 2 electric vehicle maker in North America behind Tesla.

Last year, Ford said it would invest more than $11 billion in new electric truck and battery plants in Tennessee and Kentucky, along with Korean partner SK Innovation.

GM Chief Executive Mary Barra, at a press briefing Tuesday, said Detroit-based GM is committed to make our home state the epicenter of the electric vehicle industry.

GM’s investment includes $2.6 billion with Korean partner LG Energy Solution in a new battery cell plant in Lansing that will supply Orion Township and other GM assembly plants when it opens in late 2024, Reuters news report said.

GM also is spending $4 billion to overhaul and expand the Orion plant, which will build different variants of the new Chevrolet Silverado and GMC Sierra electric pickups, President Mark Reuss said in a media briefing.

GM said last June it would boost electric and autonomous vehicle spending to $35 billion through 2025, a 30 percent jump over its prior forecast.

Separately, Michigan Governor Gretchen Whitmer said she is proposing a combined $2,500 rebate for the purchase of an electric vehicle and charging equipment. GM and Tesla have both exceeded the threshold for qualifying for a federal EV tax credit of $7,500 but Congress is considering lifting the cap and expanding federal credits for up to $12,500.