Illinois Nears Deal to Attract Electric Vehicle Battery Manufacturer
After years of efforts, Illinois is finally on the verge of attracting a major electric vehicle battery manufacturer. The Kankakee County Board has approved a property tax abatement necessary to entice the battery maker to a 160-acre site in Manteno, a village located approximately 50 miles southwest of downtown Chicago.
The identity of the company has not been disclosed, but sources familiar with the matter suggest it is Gotion, a Chinese company that has also announced plans to establish a factory in Michigan.
Manteno Mayor Tim Nugent revealed that the abatement was approved by his board and other local taxing bodies earlier this month. State and company representatives have indicated that the facility will create 2,600 jobs and involve over $2 billion in investment.
Although no final decision has been made, Nugent expressed optimism, stating, “I’m told we’re on the shortlist. I’m hopeful.”
Manteno is conveniently located just over an hour’s drive from Normal, where Rivian operates an electric vehicle plant and has been actively seeking a nearby battery manufacturer to establish a presence.
The office of Governor J.B. Pritzker declined to comment on the project due to non-disclosure agreements. However, insiders reveal that state and local officials have put forth a comprehensive incentive package worth hundreds of millions of dollars. A major portion of the package would come from a $400 million “deal-closing fund” made available by state lawmakers for Pritzker.
The Manteno site is currently largely vacant, with the exception of a former warehouse previously used by the now-defunct K-Mart retail chain for distribution. Under the terms of the abatement agreement, property taxes on the land would initially double to $2 million per year once the site is operational, but would then be frozen for a period of 30 years.
It remains uncertain whether the Illinois facility would replace or complement Gotion’s proposed Michigan factory. Last fall, Gotion announced plans to construct a $2.4 billion battery plant north of Big Rapids, after the state of Michigan offered an incentive package valued at $715 million. The project has faced controversy due to concerns about the company’s connections to the Chinese government.
Contributed by John Pletz.
