HOLLAND, Michigan — Monday evening the Holland City Council is meeting to discuss a possible expansion to the LG Energy Solution manufacturing plant in Holland.
LG Energy Solution (LGC), a South Korean based company, manufactures large lithium-ion polymer battery cells and packs for electric vehicles and other energy storage applications.
The expansion project will consist of one primary building and several additional support buildings that will total about 1 million square feet.
The total investment by LGC will be an estimated $1.5 billion by 2025. The additional facility will bring in a possible 1,000 new "well-paying" jobs into the area, according to the Holland City Council.
LGC's expansion will take place inside of a newly proposed 20-year Renaissance Zone. The Renaissance Zone will allow the company to operate virtually tax-free for most of those 20 years. As with the existing Renaissance Zone at this site, taxes are phased back in at 25% increments over the final three years, according to the Holland City Council.
The state is offering the company $525 million in incentives as well as a workforce Housing Loan Program of $10 million to support affordable housing.
The addition to its manufacturing plant will increase energy utilization by LGC by approximately 40%. The Holland Board of Public Works is planning to construct a new $10 million substation near the new facility to meet the increased energy demands.
In 2010, the Holland City Council approved 15-year Renaissance Zone for LGC's original lithium-ion manufacturing plant. The plant started producing batteries for Chevrolet Volts in 2013 shortly after construction finished.
The Holland City Council is meeting Monday, Jan. 24 at 6 p.m. to discuss the LG Energy Solution Renaissance Zone application.
The project will have to be approved by various government entities over the next several weeks. It is estimated that the final approval would take place sometime in late February.
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