Key Facts:
- LG, the Korean electronics giant, is investing $1.7 billion to expand its battery plant in Holland, MI.
- The expansion will add 1,200 new jobs and increase the plant’s production capacity fivefold.
- LG is investing an additional $3 billion in a Phase III to equip the Holland facility to make batteries for Toyota.
Expansion will add 1,200 new jobs in Western Michigan Facility
LG Energy Solution is on track to complete the $1.7 billion expansion of its Holland battery plant in 2025. Once finished, the Korean electronics giant is expected to add around 1,200 new jobs and increase the plant’s production capacity fivefold.
“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,” said Governor Gretchen Whitmer.
“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,” Whitmer added.
The plant’s expansion includes a 1-million-square-foot building, about the size of 15 football fields. LG’s leadership bills the facility as a “smart factory” that can be turned on and off from a mobile phone.
LG began producing its first batteries for the Chevrolet Volt at the Holland site in 2013. Operations have increased steadily as demand for next generation batteries has grown. LG reported a consolidated annual revenue of $63.2 billion for 2023, the company’s eighth consecutive year of growth.
Currently, LG employs about 1,500 people at its Holland plant – engineers, operators, technicians, human resources and administrative workers, and more. The plant operates 24 hours a day, seven days a week. The expansion will meet the rising demand for electric vehicles (EVs) and the batteries that power them.
State officials announced the expansion of the Holland plant in 2022 after LG agreed to a $189 million incentive package, which includes $56.5 million in state grants and a 20-year tax break valued at $132.6 million.
In April 2024, LG received unanimous approval from the Holland City Council to annex land for another expansion at the site. This $3 billion investment will increase the footprint of the Holland facilities by 1.7 million square feet and will equip the plant to produce batteries for LG’s partnership with Toyota. Though no additional jobs will be created in the third phase, LG has agreed to pay for the infrastructure improvements needed to accommodate the increased strain on utilities.
