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LG Energy Solution a $1.7 billion Investment and Expansion in Holland, MI adding 1200 jobs
by Kathleen Achtenberg - Michigan Economic Development Corporation (MEDC) - 07/18/2022
 
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• $1.7 billion investment by South Korean-based battery maker is company’s first major expansion in Michigan since 2010 • Michigan was chosen for the project over competing sites in other states and countries with support from Michigan Strategic Fund

LANSING, Mich. – Governor Gretchen Whitmer today joined the Michigan Economic Development Corporation to announce that LG Energy Solution (LGES) is investing $1.7 billion and creating 1,200 jobs at its current location in Holland. LGES’ expansion will quintuple the plant’s capacity to help produce battery components into the future as Michigan’s electric vehicle industry grows.

“LG Energy Solution’s $1.7 billion investment in Michigan will create 1,200 good jobs in West Michigan and enable us to continue to lead in building and deploying next generation transportation solutions,” said Governor Gretchen Whitmer. “Thanks to LGES’ continued investment in our state – which spans more than a decade – Michigan’s leadership role in battery manufacturing will only get stronger as the automotive industry moves toward an electric future. The impact of this win will be felt around the entire state for decades to come.”

The LGES expansion announcement comes just two months after GM announced its historic $7 billion investment in the state, which includes up to $2.5 billion to build Ultium Cell LLC’s third U.S. battery cell plant in the city of Lansing and Delta Township, a joint venture between GM and LG. The two companies have a longstanding relationship, and GM acted as a key partner in bringing LG to Michigan in 2010. The Holland investment will fall under the LGES entity, which recently completed a record-breaking IPO in South Korea.

LG Energy Solution, formerly known as LG Chem Michigan, 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.

As the future of the electric vehicle industry grows, LG Energy Solution 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 in Holland.

The state-of-the-art Michigan 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 battery pack.
The project further boosts Michigan’s leadership in the electric vehicle and high-tech manufacturing industries and brings a large number of good jobs to Michigan workers. The company has been one of the largest employers in the Holland community since 2010 and provides full benefits and training opportunities to its employees. This project will also cement LGES’s commitment to Michigan and will have a tremendous positive impact on Michigan’s economy.

The Michigan Strategic Fund today approved a package of incentives to support the company’s new battery manufacturing facilities:

A $10 million Michigan Business Development Program performance-based grant for the creation of up to 1,200 jobs;
A $10 million Jobs Ready Michigan performance-based grant to assist with job-related training;
A 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.
“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.”

As the company continues to expand its footprint in the state, LGES is providing opportunities for growth and development to its nearly 1,500 Michigan employees and counting. For information on careers with LG Energy Solution, visit https://lgenergymi.com/.

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.”

“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 LG Energy Solution expansion project into the city of Holland is very beneficial to the people in our district. I am proud to have this company’s support and partnership for our community,” said State Rep. Mary Whiteford, R-Casco Twp. “The jobs created by these green initiatives bring 1,200 new jobs to our area. With this clean energy investment, our community will be an even better place to live, work and play.”
Contact Email: achtenbergk@michigan.org
 
More Details: https://www.michiganbusiness.org/press-releases/2022/03/whitmer-announces-1200-new-jobs-from-lg-energy-solutions-$1.7-billion-investment-expansion-holland/
 
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