Ultium receives incentives for fourth battery plant
Kalea HallPartners General Motors Co. and LG Energy Solution received support from local officials in St. Joseph County, Indiana, this week for a proposed battery cell manufacturing plant.
The county on Tuesday granted the companies, through their Ultium Cells LLC joint venture, a 10-year real property and 15-year personal property tax exemptions. The exemptions are estimated to save the company about $270 million over a 15-year period, said Bill Schalliol, executive director of economic development for the county.
An agreement approved by the county also calls for the government to cover $15 million to $17 million in infrastructure updates at the site, including for water and sewer extensions and road improvements, Schalliol said.
Ultium Cells is considering New Carlisle, Indiana, for the location of its fourth U.S. battery cell manufacturing plant, which would cost more than $2 billion. Other plants are in Warren, Ohio; Spring Hill, Tennessee, and Delta Township near Lansing.
The company is looking at a site of about 680 acres inside the Indiana Enterprise Center in New Carlisle. The property has access to rail and is near interstates, according to a description on St. Joseph County's website.
Ultium expects to hire 1,600 and provide a total annual payroll of $75.2 million, according to a development agreement with the county. The South Bend Regional Bend Regional Chamber estimates the total economic impact of the Ultium plant at full production in 2027 at $652 million annually.
Schalliol said the county is waiting to see if the company will move forward with the site.
"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," GM spokesperson Dan Flores 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."