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General Motors is set to receive a 12-yar tax break in return for expanding its $1.3 billion EV plant.

The Orion Assembly plant, located in the Orion Township some 30 miles from the centre of Detroit, MI, has been in operation for almost 40 years but is set to be expanded to build more EVs.

If GM decides to go ahead with its new investment in the plant, it would receive a 50% reduction in property taxes over the next 12 years. 

“Apparently there’s going to be an announcement next week,” Township Supervisor Chris Barnett told Crain’s Detroit Business. “What we did tonight just paves the way to let them know that the local unit of government is supportive of them continuing to reinvest in the plant in Orion.”

“Until they put a shovel in the ground, nothing really has been done,” he continued.

GM announced that it was considering expanding the plant, which currently builds the Chevrolet Bolt EV and EUV, back in December.

However, its new plans would see the site build electric pickup trucks based on the company’s Ultium platform. The Chevy Bolt vehicles aren’t built on the Ultium platform, hence the need for retooling and expanding the plant. 

The new electric GMC Hummer, meanwhile, would be built on the platform and is already proving popular with consumers.

GM is currently on something of a roll with its transition to EVs. The company is building new plants and manufacturing centres across North America including a new cathode processing plant as well as a new lithium-metal, silicon, and solid-state battery plant in Michigan. GM hasn’t announced where the cathode plant is set to be built yet.

“We are building a sustainable and resilient North America-focused supply chain for EVs covering the entire ecosystem from raw materials to battery cell manufacturing and recycling,” said Doug Parks, GM executive vice president, Global Product Development, Purchasing and Supply Chain in December.

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