LG Chem, a South Korean company that produces advanced batteries, is planning a new electrolyte production facility in Holland, Michigan. The company already has a $303 million battery cell plant in Holland, which is under construction. That facility, expected to measure 600,000 square feet, will employ up to 400 people when it opens in 2012.

"LG Chem formulates its own electrolyte, a key component of battery production," said Governor Jennifer Granholm. "We appreciate LG Chem CEO Peter Kim's assertion that the company intends to make this key component in Michigan. Today's announcement sends a strong signal about the market potential for electric vehicles, and reaffirms LG Chem's commitment to our state."

LG Chem is producing batteries for the Chevrolet Volt, and has signed a contract with Ford to supply batteries for its 2012 Ford Focus BEV. The U.S. Department of Energy supports LG Chem's Michigan operations with a $151.4 million grant.

The developments arose from Governor Granholm's recent investment mission to South Korea.