The Michigan Economic Development Corp. (MEDC) has announced that LG Energy Solution (LGES) is investing $1.7 billion and creating 1,200 jobs at its current location in Holland.
LGES’ expansion will quintuple the plant’s capacity to help produce battery components into the future as Michigan’s electric vehicle industry grows. The announcement comes just two months after GM announced a $7 billion investment in the state, which includes up to $2.5 billion to build Ultium Cell battery cell plants in Lansing and Delta Township, a joint venture between GM and LG.
“LG Energy Solution is at the forefront of green business, promoting sustainability, electrification and innovation. We have already become a contributor to the state of Michigan’s ‘championship economy.’ Michigan was a natural choice to our commitment of building an impactful global business because of its rich pool of talent, being close to the geographic epicenter of the automotive industry and its strong support,” says Bonchul Koo, president of LGES Michigan.
“I am optimistic about realizing LG Energy Solution’s aim to achieve carbon neutral by 2050 and about creating ripple effects of environment conscious business in Michigan and beyond. I look forward to what the future holds.”
LGES, formerly known as LG Chem Michigan, manufactures large lithium-ion polymer battery cells and packs for electric vehicles. The company has had a presence in Holland since 2010 when it built its first EV battery plant in the U.S. and now has 1,495 employees in Michigan.
As the future of the electric vehicle industry grows, LGES needs the additional capacity to allow for the production, testing and storage of materials needed for battery manufacturing. The expansion includes the construction of several new facilities on LGES’s existing footprint in Holland.
The state-of-the-art Michigan plant will use the most advanced and efficient battery cell manufacturing processes. Particularly, the facility will manufacture the company’s new long cell design batteries with improved energy density thanks to cutting-edge technologies that allow engineers to more fully utilize the space within the battery pack. The long cell design batteries are expected to advance EV’s driving range and ESS’s energy storage.
The project further boosts Michigan’s leadership in the electric vehicle and high-tech manufacturing industries and brings a large number of good jobs to Michigan workers. The company has been one of the largest employers in the Holland community since 2010 and provides full benefits and training opportunities to its employees.
The Michigan Strategic Fund (MSF) today approved a package of incentives to support the company’s new battery manufacturing facilities:
- A $10 million Michigan Business Development Program performance-based grant for the creation of up to 1,200 jobs.
- A $10 million Jobs Ready Michigan performance-based grant to assist with job-related training.
- A 20-year Renaissance Zone to the city of Holland, valued at an estimated $132.6 million.
- Up to $36.5 million in Community Development Block Grant (CDBG) funds to Allegan County to reimburse the company for the purchase of machinery and equipment, with an additional $50,000 for grant administration.
As the company continues to expand its footprint in the state, LGES is providing opportunities for growth and development to its nearly 1,500 Michigan employees and counting. For information on careers with LG Energy Solution, click here.
Local support includes an Economic Development Incentive Rider from the Holland Board of Public Works that will provide significant savings. Allegan County is also acting as applicant for the CDBG program application and process, and the city of Holland is supportive of a property tax abatement. Lakeshore Advantage helped connect the company with local and state resources to help make this project a reality.
“We are extremely grateful for LG’s long-term partnership and employment in our community. As an international leader in advanced energy storage, LG choosing our region for this transformational expansion is extraordinary,” says Jennifer Owens, president of Lakeshore Advantage. “Automotive electrification is the future and to have a global leader in electric vehicle production residing in our community cements West Michigan as a national competitor for future-focused economic prosperity.”
Quentin Messer Jr., CEO of the MEDC and president and chair of the Michigan Strategic Fund adds: “LG Energy Solution’s investment underscores the strength of the workforce within our state’s automotive sector and secures a critical economic win as we build a championship economy across the state.
“We appreciate LGES’s continued vote of confidence in Michigan and look forward to working with the company as it continues to grow and add jobs for our residents. Today’s announcement demonstrates our strong partnerships at the local and regional level and our commitment that Michigan’s economic recovery is felt by all 10 million of our friends and neighbors.”