Located in the Silicon Valley area, the plant is Gotion's first US battery pack production line, targeting the Americas energy storage system market.

(Image credit: Gotion)

Gotion High-tech has seen its first battery pack roll off the line at its US plant, marking the official launch of the Volkswagen-backed Chinese power battery giant's made-in-America strategy.

Gotion's first US battery pack officially rolled off the line at its Fremont plant on December 21, following its announced forays into batteries and materials in Illinois and Michigan, the company said today.

Located in the Silicon Valley area, the plant is Gotion's first battery pack production line in the US, with a planned capacity of 1 GWh and 85 percent line automation, it said.

The Gotion Fremont plant is targeting the Americas energy storage systems market, with a focus on portable energy storage products and home energy storage products with capacities ranging from 3 kWh to 30 kW, the company said.

The plant will also work on technology and product innovation, and customer development to provide reliable and safe integrated energy storage systems, Gotion said.

Gotion established its Silicon Valley research institute in 2014 as the starting point for its internationalization, which is now a full decade old, said Li Chen, the company's senior vice president and president of Americas business.

Together with the Illinois battery plant and the Michigan materials plant, the company will work with customers to build a localized, diversified, full-value-chain supply chain, Li said.

Founded in 1998 and headquartered in Hefei, China, Gotion incorporated its California branch in 2014 and conducts research and development activities mainly in Fremont, California, and Cleveland, Ohio.

Gotion is one of the few companies in China's electric vehicle (EV) industry chain that is actively expanding into the US market at a time of heightened geopolitical risk in recent years.

On October 5, 2022, Michigan Governor Gretchen Whitmer said in a statement that Gotion had chosen to build its $2.36 billion battery materials plant in Big Rapids, which will create 2,350 jobs.

Once completed, Gotion's plant is expected to produce 150,000 tons of cathode material per year, with two 550,000-square-foot production plants planned as well as other supporting facilities.

In addition, the project will involve the construction of two production plants dedicated to the production of anodes, ultimately producing 50,000 tons of anode material per year.

On September 8, Illinois Governor JB Pritzker said in a statement that Gotion will build a $2 billion battery gigafactory in the state, which is expected to begin production in 2024.

The Illinois plant, which will focus on lithium-ion cells, battery pack production and energy storage system integration, is expected to produce 10 GWh of battery packs and 40 GWh of battery cells when completed and will help to strengthen the US EV battery supply chain, the statement said.

Gotion is one of the world's largest EV battery makers, with 13 GWh installed globally in the January-October period, ranking 8th with a 2.4 percent share, according to South Korean market researcher SNE Research.

Chinese EV battery maker Gotion to build $2 billion plant in Illinois, to start production in 2024