LG Energy Solution to build $1.7B battery production facility in Holland

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Courtesy LG Energy Solution

An advanced lithium-ion battery manufacturer is investing $1.7 billion to expand in the city of Holland in a move that will create 1,200 jobs.

Seoul-based LG Energy Solution will add more than 1 million square feet to its existing footprint in the city’s limits to meet the growing demand for lithium-ion batteries. The company aims to increase battery production capacity through this expansion, which is set to open in 2024.

The project is expected to create 1,200 new jobs by 2025.

“LG Energy Solution is at the forefront of green business, promoting sustainability, electrification and innovation,” said Bonchul Koo, president of LGES Michigan. “We have already become a contributor to the state of Michigan’s ‘championship economy.’ Michigan was a natural choice (for) 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.

“I am optimistic about realizing LG Energy Solution’s aim to achieve carbon (neutrality) by 2050 and about creating ripple effects of environment-conscious business in Michigan and beyond.”

Lakeshore Advantage helped connect the company with local and state resources to make the project possible.

“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.”

West Michigan Works! is supporting the project with a workforce hiring and training plan valued at $5.18 million.

Grand Rapids Community College is providing $14.5 million in Michigan new jobs training, and Michigan Community Capital is providing a $1.7 million new market tax credit.

The Michigan Strategic Fund (MSF) is supporting the project with a $36.5 million community development block grant, a $10 million business development program grant, a $30.17 million state essential services exemption and a $10 million Jobs Ready Michigan program grant. The MSF also approved a renaissance zone for the project valued at $132.6 million.

Allegan County is supporting the project through a $36.5 million community development block grant through the MEDC.

In addition to local approval of the renaissance zone, the city of Holland proposed support for the project in the form of a 12-year industrial facilities tax exemption valued at approximately $2.9 million that will go in front of Holland City Council later.

Holland BPW is supporting the project with the construction of a $10 million new substation — at no cost to the company — as well as a $1 million economic development incentive rider.

LG Energy Solution plans to operate the plant as an incubating hub that nurtures next-generation battery professionals.

Established in 2010, the Holland plant currently is manufacturing lithium-ion battery cells for electric vehicles. LG Energy Solution employs more than 1,200 people at its Holland location. After the expansion is complete, LG Energy Solution will use the extended production lines to manufacture battery cells for electric vehicles and for energy storage systems (ESS).

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