LG Energy Solution is planning to build a $1.7 billion battery manufacturing facility in the Netherlands

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Courtesy of LG Energy Solution

Advanced lithium-ion battery maker is investing $1.7 billion to expand in city of Holland, creating 1,200 jobs.

Seoul-based LG Energy Solution will expand its existing presence on the city’s borders by more than 1 million square feet to meet the growing demand for lithium-ion batteries. The company intends to increase battery production capacity through this expansion, which is expected to open in 2024.

The project is expected to create 1,200 new jobs by 2025.

“LG Energy Solution is at the forefront of the green business, driving sustainability, electrification and innovation,” said Bonchul Koo, President of LGES Michigan. “We have already contributed to the state of Michigan’s ‘championship economy’. Michigan was a natural choice 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.

“I’m optimistic about achieving LG Energy Solution’s goal of achieving carbon neutrality by 2050 and creating a far-reaching impact of green businesses in Michigan and beyond.”

Lakeshore Advantage helped match the company with local and state resources to make the project possible.

“We are very grateful for LG’s long-term partnership and employment in our community. As a global leader in advanced energy storage, it is extraordinary that LG has chosen our region for this transformative expansion,” said Jennifer Owens, President of Lakeshore Advantage. “Automotive electrification is the future, and having a world leader in electric vehicles in our community solidifies West Michigan as a national competitor for future-oriented economic prosperity.”

West Michigan Works! is supporting the project with a $5.18 million recruitment and training plan.

Grand Rapids Community College is providing $14.5 million to train new jobs in Michigan, and Michigan Community Capital is providing a $1.7 million tax credit for new markets.

The Michigan Strategic Fund (MSF) is supporting the project with $36.5 million in community development block grants, $10 million in business development programs, $30.17 million in essential services state exemption and $10 million US dollars in Jobs Ready Michigan program grants. MSF also approved a $132.6 million Renaissance Zone for the project.

Allegan County supports the project through a $36.5 million community development block grant through the MEDC.

In addition to local approval of the Renaissance Zone, the City of Holland proposed backing the project in the form of a 12-year industrial property tax exemption valued at approximately $2.9 million, which will later be presented to the Dutch City Council.

Holland BPW is supporting the project with the construction of a new substation worth US$10 million – at no cost to the company – as well as a US$1 million economic development incentive rider.

LG Energy Solution plans to operate the facility as an incubation center nurturing next-generation battery professionals.

Founded in 2010, the plant in Holland currently manufactures lithium-ion battery cells for electric vehicles. LG Energy Solution employs more than 1,200 people at its site in the Netherlands. Upon completion of the expansion, LG Energy Solution will use the expanded production lines to manufacture battery cells for electric vehicles and for energy storage systems (ESS).

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