This article was originally published at: https://blockeditorial.com/chinese-firm-building-a-factory-in-illinois/

Chinese battery production and innovation firm, Gotion, has announced plans to establish a lithium-ion battery manufacturing facility in Manteno, Illinois, spurred by over $330 million in tax incentives offered by the state. The $2 billion project is scheduled to commence operations in 2024, with the objective of creating 2,600 jobs and producing battery cells, electric vehicle battery packs, and large-scale energy storage systems. The growing worldwide demand for electric vehicles makes Gotion’s investment in this facility an essential step in improving job creation in Illinois and strengthening America’s position in the sustainable energy market. This facility will also contribute to the state’s goal of increasing renewable energy integration and play an integral role in the pursuit of clean energy transition across the United States.

Government Support for Gotion’s Investment

Governor JB Pritzker has expressed his appreciation of this initiative, calling it “the most significant new manufacturing investment in Illinois in decades.” State and local authorities have extended over $536 million in incentives and tax reductions to Gotion through the two-year-old Reimagining Energy and Vehicles (REV) program. This significant support reflects Illinois officials’ dedication to accelerating clean energy transportation adoption in the area. Gotion’s new manufacturing investment is projected to generate thousands of jobs, boost economic growth, and help lower the state’s carbon footprint, thus aligning with the REV program’s objectives.

Agreement Terms between Illinois and Gotion

As a part of the agreement, Illinois will grant Gotion $213 million in tax credits over the next 30 years, provided the company invests at least $1.9 billion. In addition, Gotion will receive $125 million in capital funds from a $400 million pool overseen by Pritzker’s office. This significant financial support will enable Gotion to establish a strong presence in Illinois, potentially creating numerous job opportunities and contributing to the state’s economic growth. The effects of this collaboration are expected to extend to local communities, solidifying the company’s relationship with state officials and fostering a conducive environment for innovation and development.

Deal between Gotion and Kankakee County

Gotion has agreed on a deal with Kankakee County to cap taxes on the 150-acre property at $2 million per year for the next 30 years. This strategic agreement will significantly benefit Gotion, providing financial stability for the company as it expands its operations within the county. Additionally, Kankakee County will profit from this arrangement by attracting new investments and generating job opportunities for the local community over the long term.

Why Gotion Chose Illinois

Gotion selected Illinois for its favorable business climate and supportive state administration. This strategic decision enables the company to access the vast talent pool in the region, ensuring a skilled workforce for years to come. Furthermore, the state’s extensive infrastructure and strategic location promise economic benefits for both the company and surrounding communities.

Promoting Illinois as a Business Destination

Illinois Senate President Don Harmon encouraged other businesses seeking development sites, stating that “Illinois is open for business.” He emphasized the state’s commitment to fostering a supportive and thriving business environment for all industries. This includes promoting beneficial economic policies, offering attractive incentives, and ensuring access to necessary resources to facilitate business growth and success. With Gotion’s investment, Illinois stands to gain thousands of jobs, a boost in the local economy, and a significant reduction in carbon emissions, further solidifying its reputation as a welcoming business environment and leader in renewable energy efforts.

FAQ

Why did Gotion choose to set up a facility in Illinois?

Gotion chose Illinois for its favorable business climate, supportive state administration, access to a vast talent pool, and extensive infrastructure. The state’s strategic location also offers economic benefits for both the company and surrounding communities.

What kind of government support has Gotion received for this investment?

The state and local authorities have offered over $536 million in incentives and tax reductions to Gotion through the Reimagining Energy and Vehicles (REV) program. This includes $213 million in tax credits over the next 30 years and $125 million in capital funds from a $400 million pool overseen by the Governor’s office.

How many jobs will be created as a result of this investment?

Gotion’s new manufacturing facility is expected to create approximately 2,600 jobs in the area, contributing to Illinois’ economic growth and job creation.

When will the facility begin operations?

The $2 billion project is scheduled to commence operations in 2024, with the goal of producing battery cells, electric vehicle battery packs, and large-scale energy storage systems.

What is the agreement between Gotion and Kankakee County?

Kankakee County has agreed to cap taxes on Gotion’s 150-acre property at $2 million per year for the next 30 years. This agreement will provide financial stability for Gotion as it expands its operations in the county, while also attracting new investments and job opportunities for the local community.

How does this facility contribute to Illinois’ renewable energy goals?

The facility will play an integral role in supporting the state’s goal of increasing renewable energy integration and contributing to the pursuit of clean energy transition across the United States. This investment aligns with the objectives of the REV program by creating jobs, boosting economic growth, and reducing the state’s carbon footprint.

First Reported on: abc7chicago.com
Featured Image Credit: Photo by Jezael Melgoza; Unsplash; Thank you!

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This article was originally published at: https://blockeditorial.com/chinese-firm-building-a-factory-in-illinois/