GM and Ultium propose economic development in Michigan | News, Sports, Jobs

LANSING — Nondisclosure agreements signed between some state lawmakers and the Michigan Economic Development Corporation & Travel Michigan (MEDC) were unrelated to the Jan. 21 announcement that General Motors Corporation of General Motors and Ultium Cells (a battery developer led by GM and LG Energy Solution) is planning a $6.5 billion investment in electric vehicle and battery factories in Michigan, according to state documents released Friday, a new step in the GM’s plan to become carbon neutral by 2040.

Otie McKinley, MEDC’s head of media and communications, said NDAs are agreements between MEDC and lawmakers instead. NDAs, he said, were signed with lawmakers to allow the MEDC to brief them on certain projects that could potentially affect Michigan that would require a different type of trade pull tool. From meetings between the MEDC and these legislators, came on December 20, 2021, the passage of the bipartisan Strategic Outreach and Attraction Reserve (SOAR) package to “support small business and fully fund a landmark economic development toolkit to make Michigan a national leader in business attraction,” as stated in a statement from the governor’s office.

The same release says the MEDC has several transformational projects in its pipeline that would invest billions of dollars in Michigan, create tens of thousands of well-paying jobs for Michigan residents, and continue the state’s strong economic growth. . These programs will support business retention and attraction efforts in all regions through enhanced site preparation efforts and create a new “home court” benefit for the growth of automotive, electric vehicles and advanced manufacturing in the state.

The Michigan Strategic Fund (MSF), at its January 25 monthly board meeting, discussed General Motors and Ultium cells and passed a resolution to approve the critical industry program grant, the Renewable Energy Renaissance Zone/MSF Designated Renaissance Zone and Strategic Site Preparation Program Grant.

MSF’s 11-member Board of Directors has the statutory authority to direct state appropriations to support business development, community development, talent development, and state marketing activities, including the promotion of tourism, film industry, arts and cultural affairs.

GM and LG Energy Solution plan to spend $2.5 billion on a battery plant in Lansing, and GM aims to invest $4 billion to expand a plant in Orion Township that will make Chevrolet Silverado and GMC electric pickup trucks Sierra, Reuters reported, citing unnamed sources. , reported on January 21.

A Jan. 25 memo to the MST Fund’s board of directors, given to the Daily Mining Gazette by McKinley, says GM is seeking a $600 million Critical IIindustry Program (CIP) grant for the creation of a minimum of 3,200 jobs with potential up to 4,000 new jobs related to GM and Ultium expansions. The total amount of the grant will be shared between the two.

Ultium is requesting a Renewable Energy Revival Zone for a period of 18 years or an MSF-designated Revival Zone in the event that the State Board of Directors does not approve the Renewable Energy Revival Zone at the latest December 31, which

require a minimum investment of $1.5 billion with potential up to $2.5 billion (Renaissance Area Application), and Lansing Economic Area Partnership (LEAP) is applying for a grant from the $66.1 million Strategic Site Preparation Program (SSRP) for upgrading public infrastructure and utilities.

The memo goes on to say that GM and Ultium were involved in a multi-state site selection to determine where to locate the new high-volume battery cell manufacturing facility and investment. Placement consideration includes site availability and site preparation as well as ongoing implementation and operations costs, talent availability, utility and labor costs.

GM considered Michigan for previous battery cell manufacturing projects, the memo says, but ultimately chose locations in key competing states of Ohio and Tennessee based on the incentive assistance offered by those states. Incentive assistance is needed to keep this project moving forward in Michigan, especially in a highly competitive environment, the memo says.

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