General Motors’ tax bill for its all-new battery factory in Lordstown will be fairly low. Ohio and Lordstown have granted a 75-percent tax abatement for the facility that will last 15 years. The abatement comes amid the fact this new facility is literally across the street from the assembly plant GM just shut down and sold.
The New York Times reports the tax abatement was recently passed by the town of Lordstown. The tax break itself isn’t entirely surprising. Auto plants are routinely the recipients of generous tax deals due to the fact they often have large employee rosters.
This particular new battery plant is actually not entirely owned by General Motors, which may also aid in their ability to get economic incentives. The new facility will be owned by a joint venture between LG Chem and GM. Ultimately the two company’s say this will be one of the largest battery manufacturing plants in the world, but the initial employee target is 1,100.
While 1,100 employees sounds like it lot, it’s a mere fraction of the 4,500 employees Lordstown’s vehicle assembly plant housed prior to its shutter.
GM idled the Lordstown assembly plant last year after killing off production of the Chevrolet Cruze compact car. After a lengthy strike with the United Auto Workers union, GM confirmed in their new agreement with the UAW that Lordstown was closing on a permanent basis. GM then sold the facility to an electric vehicle startup named ‘Lordstown.’