LG Energy Solution is investing $1.7 billion to expand its operations in the city of Holland by adding more than 1 million square feet to its plant to meet the growing demand for its lithium-ion batteries.
The advanced lithium-ion battery manufacturer aims to increase battery production capacity through this expansion, set to open in 2024.
“LG Energy Solution is at the forefront of green business, promoting sustainability, electrification, and innovation,” Bonchul Koo, president of LGES Michigan, says in a statement. “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.
“I am optimistic about realizing LG Energy Solution’s aim to become 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.”
Many regional partners
Lakeshore Advantage helped connect the company with local and state resources to help make this project a reality. Other instrumental partners are the city of Holland, Holland Board of Public Works (HBPW), Allegan County, West Michigan Works!, Grand Rapids Community College, Michigan Community Capital, and the Michigan Economic Development Corporation.
“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,” says 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.”
Rendering shows LG Energy Solution's plans to expand Holland facility by a million square feet.
As the country struggles with a labor shortage, an important part of the expansion will be training to dramatically expand the company’s Holland workforce.
Supporting this project are West Michigan Works!, with a Workforce Hiring and Training Plan valued at $5.18 million; Grand Rapids Community College, through $14.5 million in Michigan New Jobs Training; and Michigan Community Capital, through a $1.7 million New Market Tax Credit.
The Michigan Strategic Fund 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 Michigan Strategic Fund also approved a 20-year Renaissance Zone for the project valued at $132.6 million.
“We are proud to support partnerships and investments that strengthen the West Michigan workforce and contribute to long-term viability for both businesses and community members,” says Jacob Maas, CEO of West Michigan Works!.
City expects to offer incentives
In addition to local approval of the Renaissance Zone, the city of Holland has proposed a 12-year Industrial Facilities Tax Exemption that will go to the City Council at a later date, with an approximate value of $2.9 million. Holland BPW is supporting this project with the construction of a $10 million substation – at no cost to the company – as well as a $1 million Economic Development Incentive Rider.
“The city of Holland and Holland Board of Public Works are excited to be a partner with LG Energy Solutions, the state of Michigan, and our other local partners in securing this exciting project,” says Holland Mayor Nathan Bocks. “The city is a leader in the production of electric vehicle batteries. Together with our HBPW, we are leading the way to a cleaner energy future through our Community Energy Plan."
The project is expected to create 1,200 jobs by 2025, attracting more workforce and capital to the West Michigan area. LG Energy Solution intends to operate the plant as an incubating hub that nurtures next-generation battery professionals, contributing to the state’s standing as the center of high-tech electric vehicle and component production.
“GRCC has been a proud partner with LG Energy Solution on the Lakeshore for more than a decade. As the project has expanded over the years, so has our collaboration and commitment to building a talented workforce,” says GRCC President Bill Pink. “The advanced manufacturing and technology used at LG Energy Solution will put West Michigan at the forefront of this rapidly changing field. High-tech means highly skilled. GRCC stands ready to continue our training partnership to meet demand that will only continue to grow.”
Allegan County is supporting this project through a $36.5 million Community Development Block Grant made available through the MEDC.
“LG Energy Solution’s expansion is rife with possibilities for Allegan County,” saus Jim Storey, chair of the Allegan County Board of Commissioners. “The jobs this expansion will create provides opportunity for upward mobility to our low-to-moderate income residents, positively impacting the economic vitality of our county.”
Opened in 2010, the Holland plant manufactures lithium-ion battery cells for electric vehicles. LG Energy Solution employs more than 1,200 people at that 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 to better cope with the ever-increasing demand in the U.S. market.