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Economic Impact
The estimated total economic impact of the Ultium plant at full production (2027) is $652 million annually. The Ultium facility will create or support an estimated 2,888 jobs annually in St. Joseph County. This represents wages' direct, indirect, and induced effects on the community. No final decision has been made, Ultium is still in the process of building a business case to support locating an EV battery plant in St. Joseph County.
The South Bend Regional Chamber (SBRC) uses IMPLAN, an economic modeling software that enables us to measure the impact of a specific event on our community. IMPLAN models the ripple effect of potential or existing investments. The economic impact analyses offer valuable information on many levels and across all industries. SBRC consulted with the IMPLAN team on the Ultium project to ensure the model was accurate and provided the best representation of the facility's financial impact on St. Joseph County. SBRC chose to model only the labor income impact; operational costs outside wages are not included in the model.
Additional Information About IMPLAN
- This study used the IMPLAN input-output model to conduct the economic impact assessment. IMPLAN is a proprietary input-output modeling system that uses data from the U.S. Bureau of Economic Analysis, Bureau of Labor Statistics, U.S. Census Bureau, and other sources. Private companies, governmental agencies and academic institutions regularly use IMPLAN to evaluate the macro-economic effects of policies, programs, and specific infrastructure investments.
- IMPLAN assigns each industrial or service activity (e.g., agriculture, mining, manufacturing, trade, services) to an economic sector. Using detailed U.S. Department of Commerce information, IMPLAN relates the purchases of goods and services each industry makes from other industries to the value of output in each industry. IMPLAN describes the supply chain of each industry in terms of output, value added, labor income, employment levels, and state and local tax revenue.
- For example, when a firm opens a new manufacturing facility, it hires local labor and contractors and purchases manufacturing components and materials from other in-state and out-of-state suppliers. Those suppliers have their own associated expenses and wages that spread the money throughout the economy. IMPLAN models these transactions throughout the economy to calculate the total economic impact of the investment.
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