General Motors’ new electric vehicle battery plant in Ohio has begun producing cells, which could help customers get federal tax credits.
The plant in Warren, Ohio is part of a joint venture with LG Energy Solution.
The joint-venture facility is focused on training as it prepares to ramp up production. A spokeswoman for the venture said it is producing cells, but they are not yet being shipped.
They will go into vehicles with GM̵[ads1]7;s Ultium batteries, which currently include Hummer EVs, the Chevrolet Silverado EV pickup and the Cadillac Lyriq electric SUV.
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Ultimately, however, the facility would help GM’s electric vehicles meet requirements to qualify for a federal tax credit of $7,500 per vehicle.
President Biden recently signed legislation introducing new procurement rules for battery components and critical minerals that will take effect on January 1 for electric vehicles to be eligible for the tax credits.
Under the Inflation Reduction Act, electric vehicles and their batteries must be manufactured in North America to receive the credit.
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Battery minerals must be extracted or recycled on the continent as well, otherwise half of the tax credit will be lost. The batteries also cannot have any components from China, another difficult hurdle.
The requirements are designed to build a North American supply chain for electric vehicles, so that the country is not dependent on China and other overseas countries.
The $2.3 billion, 2.8 million-square-foot battery facility now employs 800 people and will eventually have 1,300.
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The companies are considering building a battery cell manufacturing facility in Indiana.
It would be the fourth battery plan developed by the companies’ Ultium Cells LLC joint venture.
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The others are in Michigan and Tennessee.
The Associated Press contributed to this report.