China's Gotion will construct a Michigan-based EV battery materials plant

China's Gotion High-Tech is intending to construct a plant in the U.S. state of Michigan to produce materials for electric vehicle batteries for a planned battery factory nearby.

The battery manufacturer intends to finish construction of the factory by the end of 2031, having invested $2.36 billion in it. Materials for lithium-ion batteries' anode and cathode will be produced at the location. Wednesday saw the announcement of the plans.

Gotion has not revealed the anticipated output capacity of the plant, which it secured at 1.1 square kilometers. Third parties will provide some of the cash, and Michigan is anticipated to contribute subsidies contingent on the company's performance.

In the neighboring state of Illinois, Gotion is also investing $2 billion to construct an electric vehicle battery factory, with plans to begin operations in 2024.

Due to the United States' 2022 Inflation Reduction Act, which provides incentives for electric vehicles and batteries made in the United States, the company is concentrating on its U.S. operations.

If 50% of the battery components in an EV are produced and assembled in North America, consumers may be eligible for tax breaks. Gotion wants to boost domestic manufacturing, especially that of battery components, and provide automakers with the batteries that qualify for incentives.

Gotion made its debut in 2006. From January to August of this year, SNE Research of South Korea estimates that it ranked fifth in the Chinese market and ninth globally in terms of EV battery market share.