LG Energy Solution Plans Holland, Michigan, EV Battery Cell Plant
As the future of the electric vehicle industry grows, the company 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, according to state officials.
“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,” said President of LG Energy Solution Michigan Bonchul Koo. “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.”
The 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, and at the same time, simplify the overall structure of the battery pack.
“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,” said MEDC CEO and Michigan Strategic Fund President and Chair Quentin Messer Jr. “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.”
The Michigan Strategic Fund today approved a package of incentives to support the company’s new battery manufacturing facilities, which include: $10 million Michigan Business Development Program performance-based grant for the creation of up to 1,200 jobs; $10 million Jobs Ready Michigan performance-based grant to assist with job-related training; 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 funds to Allegan County to reimburse the company for the purchase of machinery and equipment, with an additional $50,000 for grant administration.
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,” said Jennifer Owens, Lakeshore Advantage President. “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.”
Formerly known as LG Chem Michigan, LG Energy Solution 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.
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