LG Energy Solution Announces $1.7 Billion Plant Expansion In Michigan

LG Chem's LG Energy Solution (LGES) will invest $1.7 billion into its existing, wholly-owned lithium-ion battery cell plant in Holland, Michigan, which was built in 2010.

According to the Michigan Economic Development Corporation (MEDC), the investment will quintuple the plant’s capacity, as well as create an additional 1,200 jobs (on top of almost 1,500 now).

The exact output in GWh/year has not been disclosed, but we heard that currently, it's 5 GWh/year.

The company produces in Holland large lithium-ion polymer battery cells (pouch type) and packs for electric vehicles. According to the info, the expanded plant will produce a new format of batteries - specifically, new long cell design batteries.

"As the future of the electric vehicle industry grows, LG Energy Solution needs the additional capacity to allow for the production, testing and storage of materials needed for battery manufacturing. The expansion includes the construction of several new facilities on LGES’s existing footprint in Holland."

"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. 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 battery pack."

The Michigan Strategic Fund announced that approved a package of incentives to support the investment:

• 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.

LGES's investment in Holland is not the only one in Michigan, as the company announced also a new joint venture plant with GM (the third Ultium Cells plant).

The $2.5 billion Ultium Cells JV plant will be located in the city of Lansing and Delta Township.

The other two Ultium Cells plants are currently under construction in Lordstown, Ohio (soon to be ready) and Spring Hill, Tennessee (production to start in late 2023).

Additionally, LGES will invest in Canada (with Stellantis) and is considering a new plant in Arizona.

In other words, LG Chem's LG Energy Solution is all-in with several sites under construction simultaneously.

See also

US: Over 10 New Battery Plants To Be Launched In 2022-2025

Report: Honda And LG Energy Solution Plan US Battery JV