LANSING, Mich. (AP) — Electric vehicle battery maker LG Energy Solution plans a $1.7 billion expansion in western Michigan that will add up to 1,200 jobs by 2025, officials announced Tuesday.
The project at the company's site in Holland, located about 155 miles (249 kilometers) northwest of Detroit, was approved for $56.5 million in state grants and a 20-year tax break worth $132.6 million.
Michigan Economic Development Corp. CEO Quentin Messer Jr., who chairs the Michigan Strategic Fund, said the expansion will quintuple the plant's ability to produce battery components. The average wage will be $1,257 a week, or about $65,000 annually, 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 facilities in the southeastern U.S. and potentially in Poland and China.
The company, which is headquartered in South Korea, could begin 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 which it is building three U.S. battery plants in Michigan, Ohio and Tennessee, and Stellantis, formerly Fiat Chrysler. Stellantis would not confirm reports that it will build a battery factory in Windsor, Ontario, with LG. The site of a planned fourth GM-LG battery plant has not been announced.
“The impact of this win will be felt around the entire state for decades to come,” Gov. Gretchen Whitmer said in a statement.
LG Energy Solution, formerly known as LG Chem Michigan, has nearly 1,500 Michigan employees, 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 plant's 2010 groundbreaking, which was aided by a $151 million federal stimulus grant. Production began in 2013.
“Michigan was a natural choice to our commitment of building an impact 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 LG Energy Solution Michigan.