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GM is investing half a billion to upgrade Indiana factory to support EV production

As part of GM’s plans to provide “EVs for everyone,” the automaker says it will be upgrading its Marion, Indiana, assembly plant. General Motors will invest $491 million to prepare the facility for the automaker’s transition to electric with new stamping capabilities.

GM’s Marion Metal Center in Indiana opened its doors in 1956, producing sheet metals for some of the most prominent American brands, including Chevrolet, GMC, Cadillac, and Buick.

The metal stamping plant celebrated 65 years of business in 2021 as GM prepares to gain EV market share with a slate of new fully electric releases.

Mary Barra, GM’s CEO, claims she is confident the automaker can surpass current EV leader Tesla in sales by 2025.

GM is readying for its second attempt to scale sales of electric vehicles after reintroducing the Chevy Bolt EV earlier this year and launching the Chevy Bolt EUV, a small electric SUV assembled at its Orion assembly plant in Michigan.

The automaker took it a step further, reviving the infamous Hummer brand known for its gas-guzzling qualities, introducing the Hummer EV Pickup and SUV.

After that, GM targeted the luxury market by releasing the Cadillac LYRIQ as Chevy took the opposite direction, launching a portfolio of EVs, including:

GM believes it’s hit an inflection point in EV production as it gears up for one of the most significant transitions the auto industry has ever seen. Wednesday, the automaker explained its strategy to provide “EVs for everyone” (you can read about that here), while its latest announcement to upgrade its assembly is another step toward its goal.

GM’s Marion Metal Center in Marion, IN .Source: GM

GM to invest $491 million to upgrade its Marion Metal plant for EVs

GM’s almost half a billion investment will be used to buy and install two new press lines, press and die upgrades, and new 6,000-square-foot addition.

GM’s executive vice president of Global Manufacturing and Sustainability, Gerald Johnson, explains:

While this investment prepares the facility for our all-electric future, it’s really an investment in our talented Marion team and will keep the plant working for many years to come.

The investment is part of a broad movement in the auto industry to build and source EVs and battery components from the US. After the Inflation Reduction Act was passed, automakers worldwide are scrambling to manufacture EVs in North America.

Indiana’s governor is excited about GM’s new expansion strategy, stating:

Indiana is the number one ranked manufacturing production state in America per capita and ranks in the top three for automotive vehicles. It’s exactly because of investments like GM’s in advanced technology and future-focused solutions that will ensure Indiana will continue to be a leader in tomorrow’s manufacturing, making the products that power and redefine mobility the world over.

GM says work on the upgrades will begin later this year.

Electrek’s Take

GM, like all automakers, is investing in the brand’s future. Global automakers see the demand for electric vehicles soaring in all major markets and are quickly transforming their fleets. Now they need the production capacity to supply that demand.

More importantly, the US is becoming a hot spot for EV investments. New climate initiatives are expected to drive demand for EVs to record levels. Recent data shows the North American EV market is forecasted to reach a volume of 7.62 million units, up nearly four-fold compared to an estimated 1.54 million in 2022.

Although the US may be adopting electric vehicles slower than other markets, such as Europe and China, it isn’t slowing the investments from coming in. Hyundai, Honda, Mercedes-Benz, and Volkswagen have all announced increased investment for EVs in North America. The new climate bills are expected to spark EV demand as GM looks to support the transition with new upgrades at its assembly plant in Indiana.

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Avatar for Peter Johnson Peter Johnson

Peter Johnson is covering the auto industry’s step-by-step transformation to electric vehicles. He is an experienced investor, financial writer, and EV enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is a significant reason he pursued a career in investments. If he isn’t telling you about his latest 10K findings, you can find him enjoying the outdoors or exercising