LG Electronics To Build EV Component Factory In Detroit 3’s Backyard

3 weeks ago by Mark Kane 18

Michigan Governor Rick Snyder congratulates LG Electronics USA Senior Vice President Ken Chang as LG announces plans to establish a new electric vehicle components plant in Hazel Park., Mich., and expanded R&D center in Troy, Michigan

LG Electronics has announced a new electric vehicle components factory to be established in the Detroit suburb of Hazel Park, Michigan, as well as the expansion of its LG R&D Center in Troy, Mich.

LG Chem supplies the bulk of the systems that make the Chevrolet Bolt EV “go” on electricity!

Spurred on by a 40%+ gain in its EV component business – thanks largely to supplying GM with 11 major e-powertrain components for the Chevrolet Bolt EV (including 60 kWh’s worth of battery cells via its Chemical division), LG is expanding its operations near the 238 mile EV’s manufacturing facility, in the “Detroit 3’s” backyard; with an eye on supply componentry to even more plug-in models in the future.

Specifically, LG will be launching a new 250,000-square-foot facility in Hazel Park, Michigan, and the expansion of its R&D department will result in nearly 300 new jobs.

LG Electronics intends to invest about $25 million and will start production in 2018.

One of the most important customers for LG in Michigan is General Motors. The automaker uses lots of LG component in the Chevrolet Bolt EV.

“Representing an LG investment of about $25 million, the project is supported by a $2.9 million capital grant under the Michigan Business Development Program over the next four years, as announced today by the Michigan Economic Development Corporation. LG also will receive hiring and training assistance from the state, including MI Works support in cooperation with local community colleges, and from the cities of Hazel Park and Troy.”

“Vehicle components represent the fastest-growing business of global technology leader LG Electronics. LG’s first-half 2017 global revenues for vehicle components were more than $1.5 billion, a 43 percent increase from the same period last year, thanks in large part to the successful collaboration with General Motors on the popular Chevrolet Bolt EV. Honored by GM as a global supplier of the year, LG Electronics received the coveted 2017 GM Innovation Award.”

Governor Rick Snyder said:

“When leading global companies like LG invest in Michigan and create hundreds of good, high-paying jobs here, it speaks volumes about the strong business and mobility climate in the state today. LG’s great technological advancements and our outstanding workforce will help pave the way for the vehicles of the future right here in Michigan.”

Ken Chang, LG Electronics USA senior vice president and head of the LG Vehicle Components North American Business Center, said:

“LG’s initiative to develop and produce world-class EV components in the United States represents a key pillar of our strategy to be the best technology partner to U.S. automakers.”

This represents a major move in the Detroit area, which has long been the home of the combustion-engined automobile. LG’s expanding presence in the area, especially with the electric vehicle focus, is a huge plus to the electric car movement.

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18 responses to "LG Electronics To Build EV Component Factory In Detroit 3’s Backyard"

  1. (⌐■_■) Trollnonymous says:

    Go Go electric EVERYTHING!!!!

    hehehe…….

  2. ziv says:

    Detroit needs the jobs! Bringing this work to the US from South Korea is a win-win for the people of Michigan, GM buyers and the US as a whole.
    Hopefully this factory will produce products that are as reliable as the packs that are fabricated at the Holland Michigan plant.

    1. SparkEV says:

      Also might be win for Korea since they can better focus on expanding their market to others rather than established market for Bolt. Fortunately, Korean President is not like Prez Dump.

    2. ffbj says:

      Yeah, maybe some of the people GM is laying off can get a job there.

    3. MTN Ranger says:

      This factory is LG Electronics. The batteries are made my LG Chem, different factory.

      1. trackdaze says:

        That factory is expanding too.

      2. Ziv says:

        I think you are right MTN Ranger, hence my comment that I hope the new “products” will be as reliable as the LG Chem packs fabricated in Holland Michigan plant. I think the Holland cells are produced in South Korea still, but the packs are fabricated in Holland. Not sure of that though.
        Bringing more of the production to the US is a good thing no matter how you look at it. And as noted previously, this allows LG to devote more of its Korean production to Korea and other Asian nations. The more the better.

        1. theflew says:

          LG Chem in Holland, MI makes cell. Packs are assembled in GM’s Brownstown, MI plant. LG Chems Holland plant was the first US gigafactory.

          1. Jake Brake says:

            LG Chem holland also makes modules and packs for other customers.

          2. Ziv says:

            Interesting! I thought the cells were still produced in Korea. I have read multiple articles about Holland and that fact flew right past me. Thanks!

      3. Jake Brake says:

        Its actually super muddy on this one. LG Chem makes the cells for the Bolt and LG Electronics made the pack. LG Electronics usually doesnt do packs, LG Chem usually does, however they ended up doing the work as part of a package deal supplying the power electronics and motors which is their specialty. Same LG, different silo.

  3. Henry says:

    If Tesla decides to build another Gigafactory in Michigan, I wonder what Gov Snyder would say ?

    1. (⌐■_■) Trollnonymous says:

      He’ll still say “no way, you can’t sell here….”

  4. WadeTyhon says:

    Keep cranking out those Bolts!

    The dealer I bought mine from has been keeping about 20 in stock and they have been selling well. Apparantly the manager’s daughter loved the car so much she bought it to be her first BEV.

  5. ffbj says:

    Makes sense for suppliers to be nearby to where their products go.

  6. William L. says:

    Great location, Detroit needs all the help they can get.

  7. unlucky says:

    No other place to put predictions I guess. But around my area Bolt sales have exploded. There used to be 2 in my lot. Now there are 4 or 5 (depends on the day). It’s getting to where if I go on an errand and DON’T see one during the trip it’s stranger than if I do.

    I’m predicting 2700 sold this month. And that’s with the shutdown. If this keeps up it’ll be 3000 next month.

  8. jim stack says:

    It’s an interesting story. The battery design was from US Argon labs. Part of the deal for the LG production was 1 factory in the USA. Now they are being used in a USA Chevy Bolt but with lots of help from LG. It’s a great partnership for all involved.
    The same battery is used for a few other cars. It’s a very good capacity and reliable battery. It is what makes Electric vehicles possible today.

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