T/CCI to invest over $20 million to manufacture electric compressors and establish EV innovation hub in Decatur
DECATUR — Governor JB Pritzker and the Illinois Department of Commerce and Economic Opportunity (DCEO) today awarded the first Reimagining Electric Vehicles in Illinois (REV Illinois) tax incentive package to T/CCI Manufacturing in Decatur. The announcement follows Illinois’ historic passage of the Climate & Equitable Jobs Act (CEJA) and the REV Illinois Act, both of which were part of a groundbreaking initiative to make Illinois the best state in the nation to drive and build an electric vehicle.
“Less than ten months ago, I signed Illinois’ groundbreaking Reimagining Electric Vehicles Act into law. Today, I’m proud to announce we’re welcoming yet another electric vehicle investment to Illinois – and the first of many that ambitious legislation will produce,” said Governor JB Pritzker. “And T/CCI isn’t just investing in their own success – they’re bringing the Decatur community along for the ride. We’re bringing all of Illinois into the 21st century economy, with good jobs and business opportunities, and this investment is yet another way we’re making that our reality.”
The comprehensive incentive package builds on Illinois’ vision of greatly expanding clean energy manufacturing and jobs while creating unique public-private partnerships that will provide opportunities for companies to collaborate on research and development and expand training. In addition to REV incentives valued at $2.2 million, the State’s Fiscal Year 2023 budget appropriated $21.3 million in capital grants to the City of Decatur and Richland Community College to create a first-of-its kind research and innovation facility and training program in partnership with T/CCI. Through competitive incentives and supporting the creation of new state-of-the-art facilities for EV companies to collaborate, Illinois is taking a unique and comprehensive approach to lay the groundwork for additional EV companies to locate or expand in Illinois.
“Our administration is committed to taking the steps needed for a green future that provides the economic opportunities to uplift Illinoisans. This announcement is a major milestone in getting us there,” said Lt. Governor Juliana Stratton. “Illinois’ efforts to bolster electric vehicle manufacturing is creating jobs, investing in our communities, and leading the charge in effective climate action.”
Headquartered in Decatur, T/CCI currently manufactures a variety of compressors suited for combustion vehicles at its Decatur manufacturing facility, while manufacturing compressors for electric vehicles at its facilities abroad in China and India. T/CCI will invest more than $20 million to retool its Decatur facility to transition to electric compressor manufacturing, which will create more than 50 new jobs, while retaining 103 positions of its current workforce for a minimum total of 150 positions.
“Governor Pritzker’s vision for Central Illinois catapults our economic development strategy into the future” said Julie Moore Wolfe, Mayor, City of Decatur. “This is a huge investment in jobs, people, and innovation not only for Decatur and Macon County, but for the entire Central Illinois region.”
“This is a significant moment for T/CCI, the City of Decatur, and the State of Illinois, as we embark on new programs to transition our industry toward widespread electrification,” said Richard Demirjian, President of T/CCI Manufacturing. “T/CCI is recognized in the industry as a leader in compressor technology, already having developed a largest range of EV compressors in the market. We’re excited to use our expertise in innovation and component manufacturing to advance Illinois’ position and create a successful partnership that drives long-lasting economic growth.”
Compressors are a critical component for electric vehicles to function. Unlike vehicles with traditional combustion engines, the compressor in an EV cools the battery in addition to providing air conditioning in the cabin. T/CCI compressors are designed for up to 45,000 hours of life, almost twice the life of other compressor manufacturers. With the largest range of capacity this allows vehicle manufacturers to optimize their systems to achieve the lowest charging times in the industry, along with perfect cabin climate and optimal battery temperature. This ensures the safety of the driver or operator by keeping the battery cool, while also providing comfort in the cabin through air conditioning.
T/CCI partners with Original Equipment Manufacturers (OEM) throughout the design and development phase to pave the road to sustainable transport and expansion. T/CCI’s reputation as a global leader in EV technology will play a critical role in advancing Illinois’ position as a leader in the market, creating a usage model to serve the needs of EV and other relevant industries across the world and conduct research to advance science and innovation in disruptive technologies.
“As we embrace the shift to electrification, it’s public-private partnerships like this that help accelerate our impact on sustainable mobility,” said Michael Grahe, Executive Vice President of Navistar Inc. “Our company has a long-standing partnership with T/CCI for their leadership to deliver technology-based solutions and has recognized their valuable contributions to the industry—including naming them 2022 Supplier of the Year in Innovation. We are excited to see our state making investments in American manufacturing that will help shape the future of transportation as we move to zero emissions.”
“Today’s announcement, the second in Decatur in the last few weeks, is another example of Governor Pritzker’s commitment to spurring economic development in communities across Illinois,” said DCEO Director Sylvia I. Garcia. “We’re proud to partner with leaders like T/CCI, who are investing in innovation, research and development, and manufacturing right here in Illinois that supports the growth of electric vehicles and continues Illinois’ leadership in green technologies.”
Building an Electric Vehicle Innovation Cluster in Central Illinois
As part of the larger incentive package, the State’s Fiscal Year 2023 budget included $15.3 million to Richland Community College and $6 million to the City of Decatur in capital grants to create an EV Innovation Cluster, including a Climatic Center for Innovation & Research Facility. This will support the growth of the EV sector in Illinois by creating innovative training programs and state-of-the-art facilities for research and development, which includes a full-scale climactic center for testing and simulations. The facility will be located on the T/CCI Decatur campus.
Richland Community College and T/CCI are working in partnership with the University of Illinois (UIUC) Grainger College of Engineering and Northern Illinois University on a training academy. The training academy will offer a new workforce training and development program with a focus on EV advanced engineering, software technology, a STEM pathways program, and accredited apprenticeship programs that offer world class training in electrification.
The Climatic Center for Innovation & Research facility will support technology advancements and climatic testing for high voltage systems, battery cooling and both A/C and heat pump capabilities. This Center will include a DC fast charger for electric vehicles for testing capability under both extreme cold and hot conditions. The Center will advance Illinois’ EV leadership position to deliver high-profile research and critical advancements in charging, range, emissions, and data analytics. The Center will be open businesses and researchers looking to accelerate opportunities for faster-to-market technology development, enhanced safety, emissions control criteria development and other advancements that will accelerate adoption of electrified technology.
This collaboration creates a new way of doing business by replacing the traditional siloed approach and combining resources to achieve higher levels of innovation, collaboration, and productivity. The capital investments in this public-private partnership model will build on the expertise, experience, and influence of all participating entities to move Illinois forward as a leader in EV and component manufacturing.
“Together we are establishing a new model for Illinois that sets the stage for how education, research and industry work together to cohesively advance us faster, invest in our people and grow our economy,” said Richland Community College President Cris Valdez. “This state-of-the-art facility will provide world class training in electrification, a registered apprenticeship program, along with immersive industry partnerships and testing available to the electric vehicle industry. At the same time, it will build the bridge from employer and unemployed to keep pace in a rapidly changing economy, and address the need to build a skilled workforce. We are extremely excited to be a part of this endeavor and grateful to Governor Pritzker and DCEO for their investment in Richland Community College.”
About REV Illinois
REV Illinois is designed to bolster Illinois manufacturing—already a top destination for electric vehicle (EV) manufacturing in the U.S.—and grow the ecosystem to create new capacity for EV and component parts production. REV Illinois offers competitive incentives to expand in or locate to Illinois for companies that manufacture EVs and EV parts or components as well as EV charging stations.
All incentives through REV Illinois are contingent upon job creation and retention, capital investments, annual compensation, and continued operation in the State. The agreement is in the process of being finalized and will be publicly available after it is fully executed.
In addition to supporting companies looking to expand or transition to electrification, Illinois is also implementing a sweeping workforce development initiative through CEJA to ensure the state’s workforce is prepared for the jobs of the future. Through CEJA, Illinois is also incentivizing Illinoisians to purchase EVs through consumer tax rebates as part of its goal of putting 1 million EVs on the road by 2030.