A new battery manufacturing plant is slated to go operational in northern Illinois next year, thanks to more than $330 million in state tax breaks.
Gotion, a Chinese battery manufacturing and development business, revealed on Friday that it will be establishing a lithium-ion battery manufacturing facility in Manteno, some 50 miles south of Chicago.
The $2 billion project is expected to create 2,600 jobs and begin production in 2024. The plant will manufacture battery cells, battery packs similar to those used in electric automobiles, and large-scale energy storage devices.
State Handed Gotion Over $536M in Incentives and Tax Cuts
In accordance with Pritzker’s administration, the state and local governments handed Gotion more than $536 million in incentives and tax cuts.
The company is the fifth to enter into an agreement with the government under the two-year-old Reimagining Energy and Vehicles (REV) program.
The state will award the corporation with $213 million in tax credits over the next 30 years under the agreement finalized on Thursday, about nine times more than all four previous deals combined.
Among other conditions, Gotion’s agreement requires a minimum investment of $1.9 billion.
Gotion will additionally get $125 million in capital funding from a $400 million pot of cash overseen by Pritzker’s office and known colloquially as a “closing fund.”
This discretionary fund was passed by legislators for the current fiscal year, giving Pritzker the authority to provide businesses incentives to relocate to Illinois in addition to those offered through other state programs.
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Company Negotiated With Kankakee County
According to a Pritzker official, conversations between the state and Gotion began about two years ago.
In addition, according to Kankakee County Board Chair Andrew Wheeler, the business additionally negotiated out a deal with Kankakee County to cap the taxes paid on the roughly 150-acre land at $2 million per year for the next 30 years.
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