GM and LG Energy Solution have received tax exemptions to build their Ultium Cells battery plant in New Carlisle, Indiana.
Partners GM and LG Energy Solution have been granted tax exemptions for a proposed Ultium Cells battery manufacturing plant in New Carlisle, Indiana.
According to The Detroit News, the approved agreement comes directly from St. Joseph County, where the Ultium Cells battery plant will likely be built. The exemptions include a real property tax exemption lasting ten years and a personal property tax exemption lasting 15 years, which could provide approximately $270 million in savings over the 15-year period. The agreement also includes plans for the government to allocate $15 million to $17 million toward infrastructure updates at the site, which can be used for water and sewer extensions, along with road improvements.
Currently, GM and LG Energy Solution are eyeing a 680-acre site within the Indiana Enterprise Center in New Carlisle. The property has favorable rail and interstate access, making it a prime candidate for a future Ultium Cells facility. An estimated 1,600 employees would be hired at the plant, with a total annual payroll of $75.2 million, and the total economic impact at full production in 2027 will be $652 million annually.
“We greatly appreciate the support New Carlisle, St. Joseph County Council and the greater area of South Bend, IN has demonstrated by approving our tax incentive applications,” Dan Flores, spokesperson for GM, said in a statement. “As we’ve previously mentioned, securing available tax incentives plays a critical role in any business case progressing. Approving our tax incentive applications is a positive step forward, however, the proposed project is not final.”
GM has yet to make a decision on whether or not it will build an Ultium Cells plant in Indiana. Currently, Ultium Cells USA facilities are comprised of one active facility – the Ultium Cells Ohio, with several more are under construction. These include the Ultium Spring Hill plant, which is progressing on schedule, having recently passed its one millionth construction hour. Production at this facility is expected to commence in early 2023. Meanwhile, construction of the Ultium Lansing plant is also underway, and production is expected to begin in late 2025.