LG ENERGY SOLUTION EXPANDS IN CITY OF HOLLAND, MI

Posted in News on March 22, 2022

LG ENERGY SOLUTION COMMITS TO A $1.7 BILLION LITHIUM-ION BATTERY PRODUCTION FACILITY IN HOLLAND, MI

1,200 new jobs and 1 million square feet announced today

03/22/2022 // HOLLAND, MI – LG Energy Solution, an advanced lithium-ion battery manufacturer, is investing $1.7 billion to expand its operations in the City of Holland. LG Energy Solution will add more than 1 million square feet to their existing footprint in the city’s limits to meet the growing demand for their lithium-ion batteries. LG Energy Solution 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. 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 Bonchul Koo, President of LGES Michigan. “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.”

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 (BPW), 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,” 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 this project with a Workforce Hiring and Training Plan valued at $5.18M, Grand Rapids Community College through $14.5M in Michigan New Jobs Training, and Michigan Community Capital through a $1.7M New Market Tax Credit.

The Michigan Strategic Fund is supporting the project with a $36.5M Community Development Block Grant, a $10M Business Development Program Grant, a $30.17M State Essential Services Exemption, and a $10M Jobs Ready Michigan Program Grant. The Michigan Strategic Fund also approved a 20-year Renaissance Zone for the project valued at $132.6M.

“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,” said Jacob Maas, CEO of West Michigan Works!.

In addition to local approval of the Renaissance Zone, the City of Holland has proposed support for the project in the form of a 12-year Industrial Facilities Tax Exemption that will go in front of Holland City Council at a later date, at an approximate value of $2.9M. Holland BPW is supporting this project with the construction of a $10M new substation – at no cost to the company – as well as a $1M 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,” said Nathan Bocks, Mayor of the City of Holland. “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 new jobs by 2025, attracting more workforce and capital to the West Michigan area which will assist the local economy. LG Energy Solution intends to operate the plant as an incubating hub that takes the lead in nurturing next-generation battery professionals, thereby contributing to the state’s strong 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,” GRCC President Bill Pink said. “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 $36.5M Community Development Block Grant made available through the MEDC.

“LG Energy Solution’s expansion is rife with possibilities for Allegan County,” said Jim Storey, Board Chair, 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.” 

Established in 2010, the Holland plant is currently 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 utilize the extended production lines to manufacture battery cells for electric vehicles, and for energy storage systems (ESS) to better cope with the ever-increasing demand in the U.S. market.

“We are fortunate to have such a diverse industrial base in our region. We know that thriving businesses lead to a thriving community,” said Jane Clark, West Coast Chamber of Commerce President. “The West Coast Chamber represents 1,200 companies in the Holland/Zeeland area and we appreciate LG Energy Solution’s membership in the West Coast Chamber and their continued commitment to our community.”