GM wins tax break from Detroit suburb for $1.3 billion plant expansion for EVs, batteries

The Orion plant, which opened in 1983, has a workforce of 1,029 hourly and 152 salary employees.

The Orion Township board’s move comes as Gov. Gretchen Whitmer’s administration and the Michigan Economic Development Corp. have been chasing GM’s planned investment in two new battery-manufacturing plants.

In December, the Michigan Legislature raced a new $1 billion tax incentives fund — paid for with federal stimulus funds — to Whitmer’s desk for her speedy signature before Christmas.

The fund was pitched by some lawmakers as critical to winning GM’s next battery plant. The automaker has previously announced plans to build EV battery plants in Lordstown, Ohio, and Spring Hill, Tenn.

The Michigan Strategic Fund board, which next meets Tuesday, is the state entity empowered to award cash incentives from the new $1 billion fund.

In December, the Lansing City Council quickly endorsed tax breaks for GM to subsidize the construction of a $2.5 billion EV battery plant adjacent to the automaker’s Delta Township assembly plant west of Lansing.

The capital city’s council unanimously approved resolutions that would establish a Renaissance Zone on a 529-acre tract of land, making it mostly property tax-free for 18 years. For tax purposes, the land would be annexed into the city of Lansing through an agreement with Delta Township, officials said.

Lansing’s city-owned utility, Lansing Board of Water & Light, later approved special electricity rates for the potential battery plant.

GM has not made a final decision on either project, company spokesman Daniel Flores said Tuesday.

“GM sincerely appreciates the support the Orion Township Board of Trustees showed by approving our tax abatement application this evening,” Flores said in a statement.

“Securing all available tax incentives plays a critical role in any business case moving forward. Approving our tax incentive application is certainly a positive step forward, however, the proposed project is not approved. I’m not going to speculate on GM leadership making a final determination on the business case under development.”