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LG Energy Solution to Expand Michigan Battery Plant, Create 1,200 Jobs

March 23, 2022
The $1.7 billion expansion will almost double LGES employment in the state.

LG Energy Solution is ramping up its battery production capacity in GM’s home state. According to a March 22 announcement from the Michigan Economic Development Corporation, the LG subsidiary will invest $1.7 billion in an expansion of its Holland, Michigan, electric vehicle battery plant. The expansion is expected to create 1,200 new manufacturing jobs and “quintuple” production capacity, MEDC said.

According to the company, the new expansion will add the plant’s capacity to produce batteries with a more efficient cell design. The “long cell design batteries,” LGES says, should improve EV range and energy storage using a simplified battery model.

The expansion will almost double the amount of LGES employees in Michigan, where it enjoys a close relationship with Michigan-based automaker General Motors. Tuesday’s announcement comes about two months after GM revealed its own plans to build a $2.5 billion battery factory in Lansing, Michigan, for Ultium Cells LLC, a joint venture between GM and LG. LGES currently employs about 1,500 workers in the state.

“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 LGES Michigan President Bonchul Koo. In a statement, he said he was “optimistic” about his company’s target to reach carbon neutrality by 2050.

Support granted to LGES by Michigan includes a $10 million grant if the 1,200 expected jobs are created, another $10 million grant for training, and up to $36.5 million to reimburse LGES for purchasing machinery and equipment.

In a statement, Michigan Governor Gretchen Whitmer hailed the plant expansion, emphasizing its history in the state and its expected long-term effects.

“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,” said Whitmer. LGES built its first U.S. electric vehicle battery plant in Holland, Michigan, in 2010.

“The impact of this win will be felt around the entire state for decades to come,” Whitmer added.

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