LANSING, Mich. (AP) — Electric vehicle battery maker LG Energy Solution is planning a $1.7 billion expansion in western Michigan that will create up to 1,200 jobs by 2025, officials said Tuesday. responsible.
The project at the company’s site in Holland, located about 249 kilometers northwest of Detroit, was approved for $56.5 million in state grants and 20-year tax relief from a worth $132.6 million.
Quentin Messer Jr., CEO of Michigan Economic Development Corp., which chairs the Michigan Strategic Fund, said the expansion will quintuple the plant’s capacity to produce battery components. The average salary will be $1,257 per week, or about $65,000 per year, plus benefits.
“We look forward to the incredible impact this project will have on the region’s economy, small businesses and workforce for generations to come,” Messer said.
A state memo requesting the incentives says LG Energy Solution was considering installations in the southeastern United States and potentially in Poland and China.
The company, which is headquartered in South Korea, could start hiring later this year. It manufactures large lithium-ion polymer battery cells and packs for electric vehicles and other applications.
It has joint venture partnerships with General Motors, with whom it is building three US battery plants in Michigan, Ohio and Tennessee, and Stellantis, formerly Fiat Chrysler. Stellantis has not confirmed reports that it will build a battery plant in Windsor, Ont., with LG. The site of a planned fourth GM-LG battery plant has not been announced.
“The impact of this victory will be felt statewide for decades to come,” Governor Gretchen Whitmer said in a statement.
LG Energy Solution, formerly known as LG Chem Michigan, has nearly 1,500 employees in Michigan, including more than 1,300 in Holland near Lake Michigan. The company plans to construct several new buildings totaling 1.4 million square feet on vacant land it already owns.
Then-President Barack Obama attended the 2010 grand opening of the plant, which was aided by a $151 million federal stimulus grant. Production started in 2013.
“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 LG Energy Solution Michigan.
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David Eggert, The Associated Press