General Motors (GM) is likely to announce $6.5 billion investment for its electric vehicle production expansion in Michigan. This investment will create approximately 4,000 new jobs at two plants.

Michigan is always associated with car manufacturing and the trend is likely to continue during the modern age of electric vehicles. GM announced developing a new battery facility in Lansing area a few months back. The estimated cost of the plant was $2.5 billion and adding around 1,700 new jobs. Now, General Motors and a joint venture with LG Energy Solution are to set announce an investment of $6.5 billion next week in Michigan. The investment is for the new truck and battery plants.

Boost for Michigan State

This investment is a significant boost for the Michigan State. They had previously missed out on three Ford Motor Co. battery factories and a Ford electric-vehicle assembly plant that will be built in Kentucky and Tennessee. The Michigan Strategic Fund plans to approve the investment during Tuesday’s meeting and the investment will bring more than 4,000 jobs at sites in Lansing and Orion Township. Michigan state lawmakers and Gov. Gretchen Whitmer recently enacted a new $1 billion fund designed to attract major business investments. “The Ford announcement felt like a punch in the nose, Michiganders have always responded to every punch with a more forceful counterpunch.” Quentin Messer Jr., CEO of the Michigan Economic Development Corp. and president and chair of the Michigan Strategic Fund said in his statement last month.

General Motors Future Plans

The Orion Township plant in Detroit is making Chevrolet Bolt electric hatchback and small SUV. The plant is employing more than 1,100 employees. In addition, the company is planning to use the existing plant to build electric pickup trucks. GM will construct the battery plant in Lansing Delta Township Assembly factory, which makes the Buick Enclave and Chevrolet Traverse SUVs.

Electric cars are amounting to less than total 3% of the total auto sales in United States. However, the sales of electric vehicles will grow significantly during the next decade. GM announced in June it would boost electric and autonomous vehicle by spending $35 million by 2025. This will create many new jobs in future years.

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