A new factory will be built by Lear Corporation in Independence Township, Michigan. For usage in upcoming electric vehicles, General Motors will get battery disconnect modules from the new facility. Additionally, Lear Corporation stated that it had been chosen as the only supplier of battery disconnect modules. They will make them for the new full-size GM Ultium-based SUVs and trucks through the year 2030.
Lear’s existing commercial relationship with General Motors is strengthened by the decision. Furthermore, it marks the E-Systems division of the company’s greatest single electrification platform win. The majority of Lear’s annual income is currently derived from the sale of seats.
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A recent story claims that the news of the new Lear plant in Independence Township comes after Michigan officials approved a fresh $6.4 million incentive package. According to a briefing note from the Michigan Economic Development Corp., the package includes a $4.5 million business development grant and a $1.9 million tax exemption.
Incentives were necessary to convince Lear to choose Michigan over rival cities in Mexico and Texas. Lear’s E-Systems division is growing in response to a larger trend in the auto industry to increase the selection of electric vehicles. In addition, Lear is also localizing its manufacturing operations in response to the Inflation Reduction Act’s incentives for on-shoring.
More on the Lear Corporation battery plant in Michigan
The proposed project includes a $112.5 million capital investment from Lear and is expected to create upwards of 500 new jobs. The new investment will be poured into three separate sites. The biggest chunk going to the new battery disconnect plant in Independence Township. The facility will span some 120,000 square feet, half of which will be dedicated to battery disconnect unit production.
Further, the remainder split between warehousing, labs, testing, and offices. Additionally, Lear is moving to upgrade its Sterling Heights plant to increase the production needed for the battery assemblies supplied to GM. Moreover, Lear is reportedly considering an expansion to its Traverse City facility to manufacture EV battery pack components.