Lion Electric Promises 1,418 Jobs: Joliet Offers Tax Abatement

JOLIET, IL — On May 7, Illinois Gov. J.B. Pritzker came to Joliet to reveal that Lion Electric, a Canadian company in Quebec, will open its first United States automobile manufacturing plant in Joliet. On Tuesday, June 8, Joliet's economic development committee will discuss a resolution to give Lion Electric a five-year 50 percent property tax abatement.

According to the Joliet resolution, Lion Electric intends to produce more than 10,000 electric vehicles per year at full capacity at the Joliet property at 3835 Youngs Road, off Route 6. Lion Electric will occupy a 906,517 industrial building now under construction. Lion Electric will make an investment of about $120 million in new machinery and equipment, city documents show.

Lion Electric plans to employ 324 workers during its first year of operation in Joliet. That total will climb to 372 employees in year two; 745 employees in year three and reach 1,418 employees in its fourth year of operation.

"The mayor and City Council have determined that the requested incentive is necessary in order to compete with other locations considered by Lion Electric Co. USA Inc," city records state.

Why is Lion Electric making the request for five years of property tax abatements?

"Although incentives were not the driving force of the decision at the beginning of the five-phase site selection process, it is currently weighing in strongly as the abatement will make the Joliet building more appealing for the company," documents the company submitted to Joliet reflect. "Lion Electric's preferred alternative to the Illinois site is in Texas, a state renowned for its deal closing fund that it boasts is the largest in the country. The site near Dallas offers cost advantages including incentives, a low corporate tax rate and a lower property tax rate which would present too great a gap without the presence of Illinois’ incentives not only through the EDGE, HIB and Prime Site but also property tax abatements.

"Lion’s first years of implementing its largest and first US manufacturing plant are critical, and a proper implementation is key to Lion’s success long-term. By providing a tax abatement in those first years of its implementation, Will County would allow Lion Electric to ramp up production quickly ultimately benefiting the community through the creation of about 1,400 jobs and economic spinoffs."

Background about Lion Electric:

Global headquarters are in Saint-Jerome, a suburb of Montreal, in the Quebec province of Canada.

How many people work in Quebec?

Lion Electric says it employs about 465 employees worldwide, most of which are based at the Saint-Jerome plant, the company’s sole operating plant. Lion said it has an annual production capacity of up to 2,500 vehicles, and in-house research and development testing center.

What's Lion Electric's presence in the United States?

U.S. entity incorporated in 2018 and currently has 48 employees.

What kind of company is Lion Electric?

Lion designs, develops, manufacturing and distributes all-electric medium and heavy-duty urban vehicles.

What are Lion Electric's production plans?

Lion says its all-electric vehicles consists of seven mid-range truck and bus models available for purchase today. Lion says it expects to launch eight new mid-range truck and bus models over the next two years with long-term plans of an expected total of 15 vehicles comprising Class 5, 6, 7 and 8 electric trucks designed for specific applications, Type A, C and D electric school buses, as well as an electric medium-duty shuttle bus and an electric ambulance, city of Joliet documents show.