HOLLAND, MI—LG Energy Solution (LGES) has announced that it is investing $1.7 billion at its plant here to increase production of lithium-ion polymer battery cells and packs for EVs by fivefold. The expansion will create more than 1,200 new jobs.
The plant will make LGES' 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. These batteries are expected to advance EV’s driving range and ESS’s energy storage, and at the same time, simplify the overall structure of battery pack.
Various incentives by the Michigan Strategic Fund will support the new manufacturing facilities. These include 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; and up to $36.5 million in Community Development Block Grant funds to Allegan County to reimburse the company for the purchase of machinery and equipment, with an additional $50,000 for grant administration.
Other Local support includes an Economic Development Incentive Rider from the Holland Board of Public Works that will provide significant savings. Also, 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.
The LGES expansion announcement comes just two months after GM announced its historic $7 billion investment in the state, which includes up to $2.5 billion to build Ultium Cell LLC’s third U.S. battery cell plant in the city of Lansing and Delta Township, a joint venture between GM and LG. The two companies have a longstanding relationship, and GM acted as a key partner in bringing LG to Michigan in 2010. The Holland investment will fall under the LGES entity, which recently completed a record-breaking IPO in South Korea.