LG Energy Solution is expanding 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 to expand its electric vehicle battery plant in Holland, Michigan. The expansion is expected to create 1,200 new manufacturing jobs and “quintuple” production capacity, the MEDC said.
According to the company, the new expansion will add the plant’s capacity to produce batteries with a more efficient cell design. “Long cell design batteries,” according to LGES, are expected to improve EV range and energy storage by using a simplified battery model.
The expansion will nearly double the number of LGES employees in Michigan, where it has 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 plant 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 fit for our commitment to building an impactful global business because of its rich talent pool, proximity to the geographic epicenter of the automotive industry, and strong support,” said Bonchul Koo, president of LGES Michigan. In a statement, he said he was “optimistic” about his company’s goal of achieving carbon neutrality by 2050.
Michigan’s support for LGES includes a $10 million grant if the expected 1,200 jobs are created, another $10 million grant for training, and up to $36.5 million to reimburse LGES for the purchase of machinery and equipment.
In a statement, Michigan Governor Gretchen Whitmer welcomed the plant’s expansion, highlighting its history in the state and its expected long-term effects.
“With LGES’ continued investment in our state, which spans more than a decade, Michigan’s leadership role in battery manufacturing will only grow stronger as the automotive industry moves toward an electric future,” Whitmer said. LGES built its first US electric vehicle battery plant in Holland, Michigan in 2010.
“The impact of this win will be felt across the state for decades to come,” Whitmer added.