LG Chem auto battery plant confirmed in Holland
Pete Daly

HOLLAND — LG Chem Ltd. has announced it will build a new $303 million lithium-ion battery manufacturing plant in Holland, employing more than 400 people there by 2013.

The company’s selection of Holland for its anticipated new battery plant “was a balanced decision based on the city's excellent infrastructure and proven, quality workforce," said Jae Ham, senior vice president, LG Chem.

Work will start this summer on a 650,000-square-foot facility, financed in part from a $151.4 million grant the company received from the U.S. Department of Energy through the American Recovery and Reinvestment Act program to encourage development of batteries for electric drive vehicles. LG Chem will also make a $151.5 million investment in the facility.

LG Chem said it expects the plant to be fully operational in 2012, producing battery cells for the General Motors Chevrolet Volt.

The plant will be operated by LG Chem’s North American subsidiary, Compact Power Inc. of Troy, and will be located on a 120-acre site in Holland located northeast of the intersection of South Waverly Road and East 48th Street.

An incentive package from the state of Michigan included a $100 million advanced battery cell tax credit, a 15-year job-creation tax credit worth $25.2 million, a Renaissance Zone designation and job-training assistance. Gov. Jennifer Granholm said other states and countries were competing to be the site for the new LG Chem battery plant.

LG Chem, Ltd. is Koreas largest chemical and rechargeable battery maker, with 2009 revenue of $13.6 billion.