Plan Unveiled for Battery Plant in Holland
By JEWEL GOPWANI
FREE PRESS BUSINESS WRITER
Korean battery maker LG Chem and its U.S. subsidiary Compact Power today confirmed their plans to build a $303-million plant to make lithium-ion battery cells for electric vehicles, including the Chevrolet Volt.
The plant, which will break ground this summer, is slated to be up and running in 2012. By 2013, LG Chem expects to have hired 400 people for the plant.
“LG Chem’s selection of Holland to house the company's battery cell facility was a balanced decision based on the city's excellent infrastructure and proven, quality workforce," Jae Ham, senior vice president, LG Chem, said in a statement this morning.
The factory will be able to make enough lithium-ion battery cells for between 50,000 and 200,000 vehicle battery packs.
LG Chem's new 650,000 thousand square-foot lithium-ion battery plant is one of four projects under way in Michigan that are using federal grants meant to jumpstart advanced battery production in the U.S.
The vast majority of advanced battery cells are made in Japan, Korea and China.
"When you look at the world market, there are virtually no cells made in the U.S., said Jeff Chamberlain, senior account manager of the technology and commercialization division at Argonne National Laboratory.
To build the plant LG Chem secured a $151.4-million grant from the Department of Energy. An incentive package from the state includes a $100-million advanced battery cell tax credit and a $25.2-million tax credit for job creation over 15 years.
The City of Holland expects LG Chem to use 70 acres in the city, said City Manager Soren Wolff. The city is purchasing an additional 50 acres from adjacent Fillmore Township for more than $800,000 to sell to LG Chem for the project.
“With this announcement Holland becomes the center of lithium-ion manufacturing in North America,” Randy Thelen, president of economic development group Lakeshore Advantage, said in a statement.
Johnson Controls, through its joint venture with French battery company Saft, is retrofitting a lithium-ion battery factory in Holland.
A123 Systems and Dow Kokam also plan to build advanced batteries in Michigan.
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