The company has had the Chevy Bolt in production since 2016 and is now looking to take the next step by introducing a variety of electric vehicles, including SUVs and pickup trucks.
On January 25, General Motors (NYSE: GM) announced a $7 billion investment in multiple facilities in the state of Michigan, with the goal of overtaking Tesla (NASDAQ: TSLA) as the top-selling EV maker in the U.S. by 2025.
GM CEO Mary Barra commented on the announcement stating:
“Today, we are taking the next step in our continuous work to establish GM’s EV leadership by making investments in our vertically integrated battery production in the U.S. and our North American EV production capacity.”
The bulk of the investment will be at the same Orion Township plant where GM produces the Chevrolet Bolt. The company has earmarked $4 billion for the facility, expanding and upgrading to make electric versions of their Chevrolet Silverado and GMC Sierra pickup trucks.
GM also announced that it will invest $2.6 billion to build one of the largest battery production plants in North America. This facility will be operated by Ultium Cells LLC, a joint venture between GM and LG Energy Solutions, and will produce batteries for several GM vehicles.
The remaining funds will be spent on retrofitting two other plants near the future battery plant in Lansing, Michigan. These plants currently produce gas-powered vehicles, so they could be targets for future investment to increase electric vehicle production further.
The combined projects will bring in 4,000 new jobs and save a further 1,000 from elimination, which led the state to offer GM $824 million in incentives to ensure those jobs went to Michiganders.
GM last traded at $53.94, down -11.82% YTD.