Armed with tax incentives, an EV parts maker to locate in Illinois

[September 06, 2024]  By Kevin Bessler | The Center Square

(The Center Square) – With a rash of companies deciding to leave Illinois for greener pastures, a Swedish company is setting up shop in the Land of Lincoln.

The electric vehicle component manufacturer Ymer Technology recently opened its new U.S. headquarters in Buffalo Grove. The company will produce cooling technology and thermal management systems for EVs.

“Illinois’ future is electric, and we’re leading the charge and open for business,” said Gov. J.B. Pritzker. “Their cooling technology and thermal management systems will not only enhance our EV supply chain, they will help us make EVs more affordable, create good jobs, and grow our clean energy economy.”

Kevin Considine, CEO of the non-profit organization Lake County Partners, said a huge factor in attracting the company was the tax incentives from the Reimagining Energy and Vehicles (REV) in Illinois agreement.

“A number of organizations, including Lake County Partners, have been able to help change the story around Illinois,” said Considine. “There are a number of incentives that Illinois didn’t use to have that other states had that are important in the competitive process for a lot of these growing industries.”

The agreement between Ymer and the state does not speify how much in tax credits the company will receive. In December 2022, Pritzker signed HB5189, enacting amendments to the Reimagining Electric Vehicles in Illinois Act (REV Illinois Act), and making other tax changes. The amendments to the REV Illinois Act include allowing projects subject to existing agreements under the EDGE Tax Credit Act to be designated as REV Illinois projects, allowing projects to continue receiving EDGE tax credits if they cease to qualify as REV Illinois projects, providing for the renewal of certain agreements, and increasing the maximum amount of the REV Illinois credit for withholding for retained jobs.

Not every EV-related company coming to Illinois has been welcomed with open arms. Gotion, which manufactures EV batteries, received over $8 billion in federal and state subsidies for its Manteno plant.

U.S. Rep. Darin LaHood, R-Peoria, said he has concerns with Gotion’s ties to the Chinese Communist Party (CCP).

“While I believe it’s important that we incentivize business growth, it is simply unacceptable that governors like J.B. Pritzker and Gretchen Whitmer have decided to leave taxpayers on the hook for billions in federal subsidies funneling the companies beholden to maligned actors like the CCP,” said LaHood.

Gotion also is opening a plant in Michigan, where Whitmer serves as governor.

Ymer Technology is bucking the trend and is locating its U.S. headquarters in Illinois. In recent months, numerous companies have moved their headquarters out of Illinois for various reasons, including Boeing, Caterpillar, Tyson Foods and Morton Salt.