By Melanie Holmes
Friday, September 8, brought huge news to Manteno in the form of a “Special Economic Event,” as it was touted by the Economic Alliance of Kankakee County. Manteno Mayor Tim Nugent, along with top leadership members of Kankakee County and Illinois, including Gov. J.B. Pritzker and Senators Don Harmon and Patrick Joyce, gathered to welcome Gotion, Inc., as the company held the Grand Opening of their first facility in North America, at 333 Spruce Street, Manteno, formerly the Kmart warehouse.
Gotion, Inc., is the American subsidiary of Gotion Global, a Chinese-based manufacturer, whose largest shareholder is Volkswagen, and was incorporated in California in 2014. Initially, Gotion, Inc., was strictly Research and Development (R&D), focusing on batteries to power Electric Vehicles (EV), as well as power for homes and industrial properties. Once considered by many to be a futuristic (and nonprofitable) industry, EV sales in 2022 topped out at 14 percent of car sales worldwide. Of those, Tesla was number one in Battery Electric Vehicles (BEV). But for America to compete, production plants – for both EVs and the batteries to power them – must be in the United States. Gotion Global already has built facilities in Europe and Asia Pacific.
“Today in Manteno, we firmly set our foot on American soil,” said David Adams of Gotion, Inc. “We’ll be using American components, American raw materials, and American labor to sell to American companies, who are shipping products to American customers and all over the world.”
The president of Gotion, Inc., Chen Li, spoke about his happiness to be back in the Midwest, and recalled his time as a Purdue “Boilermaker” (sports mascot). Li discussed how this partnership between Gotion and Illinois will provide 2,600 manufacturing jobs and create an economic benefit of more than $2 million annually in this community. Building is expected to begin in the next several months, with production to begin in the latter part of 2024. Phase one of the operation will include 1,651 positions, with another 1,000 positions added in phase two. Average wages, according to the Economic Alliance, are expected to be $55,000/year, accounting for $144 million in payroll annually.
Manteno Mayor Tim Nugent, who is also President/CEO of the Economic Alliance, said, “These are good-paying jobs in an up-and-coming industry. . .The company expects to invest a lot of resources into training employees who will be well-versed in this high-tech market. This is the way the future is going. I am glad Kankakee County can be a part of it.”
Gov. J.B. Pritzker also welcomed Gotion, Inc., and discussed how Illinois has transformed itself into a “leading destination for companies and investors,” and especially for “industries of the future.” Pritzker continued, “With a $2 billion investment, Gotion, Inc., will build a state-of-the-art EV Battery Giga Factoryright here in Manteno. This is the largest EV battery production investment in Illinois to-date.”
As announced in July, Illinois’ largest EV factory, Lion Electric, held its grand opening in the Joliet area, a manufacturer of electric school buses and trucks. Lion Electric is the first new vehicle assembly plant to open in Northeast Illinois since 1965. With this new facility comes a need for a geographically-close battery production plant. And now there is one – in Manteno.
Local property taxes at the mostly vacant (former Kmart) warehouse will be capped once they reach $2 million per year for 30 years. Currently, the site generates less than $1 million per year. Additionally, Gotion’s total incentive package from the State of Illinois includes REV (Reimagining Energy and Vehicles Illinois Program), Invest-in-Illinois, and other incentives. Together, these incentives are valued at $536 million.
With the aforementioned incentives in place, Illinois is now home to leading EV companies, including Rivian (manufacturing in Normal), Navistar (headquartered in Lisle), EV Box (headquartered in Libertyville, with future production plans for same), and Lion Electric (Joliet). In addition, as part of Illinois’ commitment to build out comprehensive EV hubs and support Illinois’ workforce, the state will fund a new manufacturing training academy, as well as award grants to workforce providers – all with the goal of preparing regional employees for this new industry’s jobs.
“This selection puts the State of Illinois in a leading position in the future of EV manufacturing,” said Manteno Mayor Tim Nugent, “and puts the village and the county on the path to becoming a leader in a new, innovative industry that is just getting started. This is a huge win for Manteno, Kankakee County, and the State of Illinois, and will enhance and strengthen our robust manufacturing sector.”