MEDC approves tax incentive for Holland EV battery plant

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Courtesy LG Energy Solution

The Michigan Economic Development Corporation recently approved an inducement resolution in the amount of $500 million, a tax exempt private activity bond, giving LG Energy Solution Michigan Inc. the go-ahead it needed to proceed with seeking financing for its electric vehicle battery plant expansion in Holland.

The company currently employs 1,495 people at its Holland plant and estimates 1,200 new jobs will be created as a result of the expansion. According to a statement released by the company, the new jobs will pay an average of $65,000 annually.

LG manufactures large lithium-ion polymer battery cells and packs for electric vehicles for General Motors, Ford, Chrysler and other EV manufacturers. The expansion will allow for the production, testing and storage of materials needed for manufacturing new long-cell design batteries that expand the driving range of EVs. The manufacturing of the new batteries calls for the building of sewage, wastewater treatment and solid waste disposal facilities.

The project also will include construction of a two-story building, a warehouse, control room, cell test building, administrative office, utility and safety facilities.

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