EV battery plant interest intensifies as Pritzker makes personal pitch to manufacturers

Greg Hinz is a politics reporter and columnist for Crain's Chicago Business. He joined Crain's in 1996 and was previously political editor of Chicago magazine and political editor and columnist for the Lerner Newspapers chain.

Illinois’ efforts to lure a major electric vehicle battery plant here finally may be close to striking gold, as Gov. J.B. Pritzker is personally negotiating with multiple companies to come here.

Among the lures: hundreds of millions of incentives, in part coming from a recently authorized state "deal closing fund," and in part a willingness by local municipalities to consider the type of long-term property tax breaks that factory owners are demanding.

Reliable sources say Pritzker has talked to — or in the next few days intends to talk to — at least three companies that have done site visits: one reportedly European based, the second Chinese and the third of unknown origin.

Much of the chatter is about a site just off of Interstate 80 in Morris, 24 miles southwest of Joliet and 62 miles from downtown Chicago in Grundy County.

The deals are serious enough that Pritzker interrupted leadership talks in Springfield on a new state budget a few days ago to travel to Morris and meet with executives of the interested company to tour a site on the east end of town, multiple sources with direct knowledge report. It's not known if Pritzker joined in the helicopter tour of the land, but he reportedly offered more than $600 million in potential incentives for the plant.

Details of how much the plant would cost and how many jobs it would create are not available. But Michigan recently offered $175 million toward a $2.4 billion, 2,350-job plant near Big Rapids. The Chinese-owned facility has run into some opposition there, and now reportedly is one of the companies sounding out Illinois for a second plant.

Julie Wilkinson, economic development director for the city of Morris, declined to say who is looking at her area, but confirmed the city is shopping "a very unique site" just off the Brisbin Road I-80 exit.

The 400-acre, former farmland site is zoned for manufacturing and located in a tax-increment financing district, Wilkinson said, and has drawn substantial interest.

Given the site attributes, "We think we can be a little picky," Wilkinson said, "not just typical industrial."

A second manufacturer is said to be weighing Illinois against sites in Indiana and Michigan. Local officials believe Illinois has the edge there, with a final decision potentially to be made before the end of the month.

Sources close to the matter say all three of the companies expressed interest after Pritzker announced plans to ramp up the state's incentive offerings. The plan, approved by the General Assembly in January, creates a $400 million deal-closing fund and authorizes local property tax breaks — this on top of the state's existing payroll credits for new jobs.

Pritzker has been under increased political pressure to deliver something in the electric vehicle space, where Illinois had an early edge with Rivian's plant in downstate Normal but has seen big suppliers such as battery makers and other EV plants recently go to other states.

As previously reported, the Pritzker administration also has put a large offer on the table to convince Stellantis to convert its now-mothballed Belvidere plant to EV production. That offer includes a state-arranged option to allow the company to acquire adjacent property for any needed expansion.

Stellantis, which has been undergoing some internal reshuffling, is still weighing its options.

Greg Hinz is a politics reporter and columnist for Crain's Chicago Business. He joined Crain's in 1996 and was previously political editor of Chicago magazine and political editor and columnist for the Lerner Newspapers chain.

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