Council to discuss expansion of LG battery factory on Monday
HOLLAND – Dutch lawmakers are expected to receive a full briefing Monday on plans to massively expand LG Energy Solution’s lithium-ion battery factory in Holland.
Although the company’s expansion plans in the Netherlands are still in the early stages of the local, county and state approval process, the project is being heralded as possibly “historic” for the city by the Mayor Nathan Bocks.
LG Energy Solution Ltd., the battery manufacturing arm of South Korean company LG Chem, officially informed Governor Gretchen Whitmer in December that Holland had been chosen as the site for a $1.5 billion investment in the company’s battery production in the United States in a letter from a the company’s vice president shared with the Holland City Council.
The plant at 1 LG Way, the Netherlands, is LG Chem’s first battery plant in the United States, with a production capacity of 5 gigawatt hours. It manufactures batteries for hybrid and electric vehicles for major automakers, including General Motors.
According to reports, the one million square foot expansion directly north of the current plant will increase plant capacity to 40 gigawatt hours by 2025.
State officials have negotiated a package of incentives for the expansion, with Lakeshore Advantage, the City of Holland and the Holland Board of Public Works.
Little new information was provided at a meeting of Holland City Council on Wednesday, but council members were promised more details would come during their 6 p.m. study session on Monday January 24, which will be devoted to the LG Energy Solutions project.
“It’s been rumored and rehearsed and worked for by a lot of people for a long time to get to this point,” City Manager Keith Van Beek said. “But in some ways he’s still trying to put all the pieces together and an ongoing act.”
The new economic development incentive fund from the State Legislature’s Strategic Outreach and Attraction Reserve “created some of the funding and the base that was able to move this proposal forward,” Van Beek said. .
Following:Michigan lawmakers approve $1 billion incentive fund to attract new factories
Following:LG’s ‘transformational’ expansion could bring 1,000 jobs to the Netherlands by 2025
The state is expected to provide LG with a significant incentive support program, as well as a state-administered $10 million Workforce Housing Loan Program, to support affordable housing in the area. from Holland.
The massive generation capacity expansion would be a lift for the Holland Board of Public Works, increasing the utility’s electricity demand by up to an estimated 40%, and requiring a new substation.
The council will be asked to approve a rebirth zone for the project, a tax abatement which exempts the company from paying almost all state and local property taxes for a period of years before the taxes are phased in.
“Our intention is that we are going to put all of this on the table with as much information as we have, a lot of it still coming in real time, and go through this (Monday) with presentations and availability for questions. and responses,” Van Beek said.
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Businesses that receive revival zone designations, awarded by the Michigan State Board of Administration if approved by the city and the Michigan Strategic Fund, must still pay all debt-related mileage.
The original plant received that benefit, which begins to phase out in 2023, and is expected to fully return to the tax rolls in 2026, according to a city memo.
“Congratulations to our City staff and the folks at Lakeshore Advantage and our great BPW. Projects like this don’t just happen, they’re very competitive types of projects and I don’t think it’s a coincidence that this project came to our doorstep,” Bocks said Wednesday.
“I also want to thank this council and previous councils for the great decisions they’ve made that have made this a community where an organization is interested in making this type of investment here, and I think it has the opportunity to be something historic for this community.”