“We believe that our software capabilities are a structural differentiator that will only grow in importance as electric vehicles continue to increase in complexity,” said Wassym Bensaid, senior vice president of software development.
While EV sales outpace inventory levels, some dealers still struggle to move the zero-emission vehicles.
Gotion Inc. is gearing up to make its first hires around Big Rapids, Mich., for a $2.4 billion electric vehicle battery parts plant that executives hope will remain non-unionized.
The project is moving forward following the Chinese company’s acquisition of 270 acres of land for the factory in Green Township and approval from company Chairman Li Zhen, who toured the site a few weeks ago with board members and expressed concerns over pushback to the plant.
“Certainly they had some questions,” said Chuck Thelen, executive at Gotion tasked with moving the plant in Michigan forward. “When it gets to national news, it even makes its way back to Germany and China. So, they were a little concerned.”
Gotion, whose largest shareholders are Volkswagen and Zhen, a Chinese national, has been at the center of controversy, from locals concerned over environmental pollution to politicians raising red flags over national security.
Thelen said he answered the questions from the board members, who ultimately signed off on the project. “I explained where the pushback was coming from, and I outlined the overwhelming support we have from the people who are actually in office,” he said.
While the land acquisition solidified the company’s commitment to the controversial project, there are still hurdles to be cleared, including final contracts with the township, state and utility companies, as well as environmental permits.
Still, Thelen hopes business will be a little smoother sailing here on out. He said he aims to start recruiting employees this week, first within a 25-mile radius of the site before expanding it to the rest of the state.
Thelen said the company will likely have 40-50 employees by year’s end in engineering, IT and other positions essential for initial operations. A workforce training partnership with nearby Ferris State University is a key piece of its labor sourcing strategy.
The plan also includes bringing 20-50 short-term employees from China to help set the plant up. A general contractor and architect are expected to be named in the next few days.
Wages and suppliers
In total, Gotion promises 2,350 new direct jobs. The average hourly wage is $24.50, plus benefits.
“The kickoff is not intended to be union,” Thelen said of workers in the plant. “If the workers are unhappy and they wish to unionize, obviously we respect the right to do so. But our preference is that we make our workers so happy that they feel they don’t need a union, and that’s the way you should collaborate with your workforce.”
The median household income in Mecosta County from 2017-21 was $48,440, according to the U.S. Census Bureau. The median wage for a production worker in Michigan is about $19 per hour, according to data from the Bureau of Labor Statistics.
In Marshall, Ford Motor Co.’s new EV battery plant is expected to pay an average yearly wage of $45,136, which equates to roughly $22 per hour, according to a breakdown obtained by Crain’s. The UAW said in a statement earlier this year that it “will be able to organize this new facility using a card check to prove majority interest.”
The new jobs being created by LG Energy Solution’s expansion in Holland are expected to pay $65,000 annually, or about $31.25 per hour.
Gotion has yet to disclose names of customers outside the Gotion umbrella, but Thelen said they include automakers and energy storage companies in Michigan. The plant, which will be capable of supporting 100 gigawatt hours of battery production, will also supply a Gotion battery pack plant in the U.S. Its location has not yet been announced, but Thelen said it will not be in Michigan.
Also yet to be announced are the suppliers of the battery parts plant in Michigan. The company is seeking contracts with companies for materials including graphite, coke and lithium iron carbonate. To the extent possible, they will tap local suppliers, according to Thelen. “The materials that we use will be targeted for local production,” he said.
The project was recently pushed back a year due to various delays, including a reworked footprint cutting out a neighboring site in Big Rapids Township. Gotion has indicated that the township board’s opposition to the project was the primary reason why, but height restrictions of structures near Roben-Hood Airport were also a factor.
While there has been some general concern in the industry about slumping sales of EVs, Thelen said there has been no slowdown in demand for Gotion’s products. Now it is just a matter of getting the plant up and running.
“I’ve been involved in a lot of projects in the automotive sector, and you never know when somebody might pull a plug, but everything we’re working towards right now is to have a successful launch,” he said.
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