Paul Lienert & David Shepardson

(Reuters) – General Motors Co (NYSE) announced Tuesday that it would invest $7 billion in Michigan. This investment will be primarily aimed at significantly increasing production of full-size electric pick-ups. It intensifies the battle against Detroit rival Ford Motor (NYSE) Co to become North America’s EV leader.

The U.S. automakers must compete with Tesla (NASDAQ) who will soon open its second U.S. factory in Austin Texas. Tesla is expected to sell over 1,000,000 electric cars globally by 2022.

GM announced that its Detroit-Hamtramck, Orion Township and Orion Township facilities will be able build over 600,000. Electric trucks in the USA by 2024. Three additional plants in Tennessee and Ontario, Mexico, and Mexico, would increase the firm’s production of EVs to over a million by 2025.

Ford stated in January it plans to have 600,000 electric vehicles built annually by the end of 2019, including 150,000 F-150 Lightning pickups. It also hopes to “become No.1” for this type of vehicle. Tesla is the second-largest North American electric vehicle manufacturer.

Ford, alongside its Korean partner SK Innovation, announced last year that it will invest over $11 billion to build new electric trucks and batteries in Tennessee and Kentucky.

Mary Barra, GM chief executive on Tuesday stated that GM’s recent investment “solidifies the path towards U.S. EV leadership by mid-decade.”

With Korean partner LG Energy Solution, the investment comprises $2.6 billion in a Lansing new battery plant. This will be used to supply Orion Township with GM assemblies plants once it opens in mid-2024.

President Mark Reuss announced that GM is investing $4 billion in Orion to expand and overhaul the plant. The Orion plant will make different models of the Chevrolet Silverado, GMC Sierra and other electric pickups.

Reuters reported previously many details regarding the Michigan investment.

Reuss did not provide any details regarding the Michigan incentives to secure GM investments. The incentives include $500 million in Lansing plant that manufactures combustion-engine vehicles. Michigan officials claimed that the state provided $824million in incentives in order to provide support for 4,000 new GM jobs.

He did not say when GM would stop building the Chevrolet Bolt EV or Bolt EUV at Orion. A GM press release stated that production of both electric cars will continue after the conversion.

Ultium Cells (GM-LG) will build the Lansing plant. It is the third U.S. facility. The construction of a fourth North American battery plant has already begun.

GM stated last June that electric and self-driving vehicle spending would increase to $35 billion by 2025. That’s a 30% rise over its previous forecast.