LG Energy Battery Plant Expansion Project

LG Energy is expanding its Holland, Michigan, facility that manufactures lithium-ion polymer battery cells and packs for electric vehicles.

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Photo shows a closeup of a hand working on a car part
A team member secures a battery module at a General Motors assembly plant in Michigan, July 2021. (Getty/Nic Antaya for The Washington Post)
  • Project name: LG Energy Battery Plant Expansion Project

  • Law: Inflation Reduction Act

  • Recipient: LG Energy

  • City: Holland

  • State: Michigan

  • Congressional districts: 2 and 6

  • Construction start date: Plant scheduled to open in 2024

  • Jobs created: 1,200

This profile is part of a project that finds and tracks the public and private sector investments generated or supported by three of the Biden administration’s economic laws. These laws make investments in the American people, helping to grow the middle class, lowering the cost of living, and setting up America to better compete and cooperate in the world. Pulling directly from several sources, this catalog provides users with publicly available information such as the number of jobs created, workforce training partnerships, and storytellers benefiting from particular projects, among other detailed information. The profile below expands on the economic, practical, and climate impacts of just one of the 35,000 investments that can be found in the Biden Administration Investment Tracker. It may be updated to account for future project developments.

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The $1.7 billion expansion of the Holland, Michigan, electric vehicle (EV) battery manufacturing facility is part of General Motors’$7 billion investment in the state. It will increase advanced battery production fivefold while improving battery efficiency and lifespan. This expansion will add 1,700 more jobs and support training new employees for the facility as well.

Historical context

  • “The LGES expansion announcement comes just two months after GM announced its historic $7 billion investment in the state, which includes up to $2.5 billion to build Ultium Cell LLC’s third U.S. battery cell plant in the city of Lansing and Delta Township, a joint venture between GM and LG. The two companies have a longstanding relationship, and GM acted as a key partner in bringing LG to Michigan in 2010. The Holland investment will fall under the LGES entity, which recently completed a record-breaking IPO in South Korea.”– Michigan Economic Development Corp. , March 22, 2022
  • “LG Energy Solution, formerly known as LG Chem Michigan, manufactures large lithium-ion polymer battery cells and packs for electric vehicles. The company has had a presence in Holland since 2010 when it built its first EV battery plant in the U.S. and now has 1,495 employees in Michigan.”– Michigan Economic Development Corp., March 22, 2022

Project summary

  • “Governor Gretchen Whitmer today joined the Michigan Economic Development Corporation to announce that LG Energy Solution (LGES) is investing $1.7 billion and creating 1,200 jobs at its current location in Holland. LGES’ expansion will quintuple the plant’s capacity to help produce battery components into the future as Michigan’s electric vehicle industry grows.”– Michigan Economic Development Corp., March 22, 2022
  • “The state-of-the-art Michigan plant will use the most advanced and efficient battery cell manufacturing processes. Particularly, the facility will manufacture the company’s new long cell design batteries with improved energy density thanks to cutting-edge technologies that allow engineers to more fully utilize the space within the battery pack.”– Michigan Economic Development Corp., March 22, 2022
  • “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.”– AP News, March 23, 2022

Outcomes, improvements, and practical impact

  • “The long cell design batteries are expected to advance EV’s driving range and ESS’s energy storage, and at the same time, simplify the overall structure of [the] battery pack.”– Michigan Economic Development Corp., March 22, 2022
  • “Battery production capacity to increase five-fold, to 25 gigawatt hours.”– LG Energy Solution, March 22, 2022

Climate impact

  • “LG Energy Solution is at the forefront of green business, promoting sustainability, electrification and innovation.”– Michigan Economic Development Corp., March 22, 2022
  • “I am optimistic about realizing LG Energy Solution’s aim to achieve carbon neutral[ity] by 2050 and about creating ripple effects of environment conscious business in Michigan and beyond.”– Michigan Economic Development Corp., March 22, 2022

Racial equity and justice impact

  • “The company plans to construct several new buildings totaling 1.4 million square feet on vacant land it already owns.”– AP News, March 23, 2022

Economic impact

  • “The project further boosts Michigan’s leadership in the electric vehicle and high-tech manufacturing industries and brings a large number of good jobs to Michigan workers. The company has been one of the largest employers in the Holland community since 2010 and provides full benefits and training opportunities to its employees. This project will also cement LGES’s commitment to Michigan and will have a tremendous positive impact on Michigan’s economy.”– Michigan Economic Development Corp., March 22, 2022
  • “The Michigan Strategic Fund today approved a package of incentives to support the company’s new battery manufacturing facilities: A $10 million Michigan Business Development Program performance-based grant for the creation of up to 1,200 jobs; A $10 million Jobs Ready Michigan performance-based grant to assist with job-related training; A 20-year Renaissance Zone to the city of Holland, valued at an estimated $132.6 million; Up to $36.5 million in Community Development Block Grant funds to Allegan County to reimburse the company for the purchase of machinery and equipment, with an additional $50,000 for grant administration.”– Michigan Economic Development Corp., March 22, 2022
  • “State grants an incentive package of approximately USD 56.5 million grants and 20-year Renaissance Zone designation (USD 132.6 million).”– LG Energy Solution, March 22, 2022
  • “Grand Rapids Community College is providing $14.5 million in Michigan new jobs training, and Michigan Community Capital is providing a $1.7 million new market tax credit.”– Crain’s Grand Rapids Business, March 22, 2022
  • “Holland BPW is supporting the project with the construction of a $10 million new substation — at no cost to the company — as well as a $1 million economic development incentive rider.”– Crain’s Grand Rapids Business, March 22, 2022
  • “The average wage will be $1,257 a week, or about $65,000 annually, plus benefits.”– AP News, March 22, 2022
  • “Local support includes an Economic Development Incentive Rider from the Holland Board of Public Works that will provide significant savings. Allegan County is also acting as applicant for the CDBG program application and process, and the city of Holland is supportive of a property tax abatement. Lakeshore Advantage helped connect the company with local and state resources to help make this project a reality.” – Michigan Economic Development Corp., March 22, 2022

The grant will support employee training and growth:  

  • “LGES is providing opportunities for growth and development to its nearly 1,500 Michigan employees and counting.”– Michigan Economic Development Corp., March 22, 2022
  • “West Michigan Works! is supporting the project with a workforce hiring and training plan valued at $5.18 million.”– Crain’s Grand Rapids Business, March 22, 2022

Official supporting statements

  • Michigan Gov. Gretchen Whitmer (D): “LG Energy Solution’s $1.7 billion investment in Michigan will create 1,200 good jobs in West Michigan and enable us to continue to lead in building and deploying next generation transportation solutions. … Thanks to LGES’ continued investment in our state – which spans more than a decade – Michigan’s leadership role in battery manufacturing will only get stronger as the automotive industry moves toward an electric future. The impact of this win will be felt around the entire state for decades to come.”– Michigan Economic Development Corp., March 22, 2022
  • State Rep. Mary Whiteford (R-MI): “The LG Energy Solution expansion project into the city of Holland is very beneficial to the people in our district. I am proud to have this company’s support and partnership for our community. … The jobs created by these green initiatives bring 1,200 new jobs to our area. With this clean energy investment, our community will be an even better place to live, work and play.”– Michigan Economic Development Corp., March 22, 2022

Selected clips

  • “A look at the 1,200 jobs LG needs to fill in Holland”– WOOD-TV8, March 30, 2022
  • “LG Energy Solution Michigan, Inc. Expansion | Construction Update”– LG Energy Solution, March 22, 2022
  • “LG Energy Solution to build $1.7B battery production facility in Holland”– Crain’s Grand Rapids Business, March 22, 2022

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