• Battery production capacity to increase five-fold, to 25 gigawatt hours
• 1,200 new jobs to be created in West Michigan, a future incubating hub for battery professionals
• State grants an incentive package of approximately USD 56.5 million grants and 20-year Renaissance Zone designation (USD 132.6 million)
• Investment marks a long-standing partnership between LGES and the State of Michigan

SEOUL, March 22, 2022 – LG Energy Solution (LGES; KRX: 373220) today announced a USD 1.7 billion investment by year 2025 to expand its battery cell manufacturing plant in Holland, Michigan.

The company plans to invest USD 1.7 billion in constructing new facilities in the 1.4 million-square feet of the vacant land owned by LG Energy Solution, aiming to increase battery production capacity by five times, from 5GWh to 25GWh, by 2025. Site preparation will begin this summer, and the plant is scheduled to open in 2024.

Established in 2010, the Holland plant is currently manufacturing lithium-ion battery cells for electric vehicles. After the expansion gets completed, the company will utilize the extended production lines in manufacturing battery cells for electric vehicles, as well as for energy storage systems (ESS), to better cope with the ever-increasing demand in the U.S. market.

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 project is also expected to create 1,200 new jobs by 2025, attracting more workforce and capital to the West Michigan area and boosting the local economy. LGES intends to drive the plant as an incubating hub that takes the lead in nurturing next-generation battery professionals, thereby contributing to the state’s strong standing as the center of high-tech electric vehicle and component production. For information on careers with LGES, visit https://lgenergymi.com.

“Holland plant expansion demonstrates our commitment to leading the battery market with our continued product innovations and strong ties with local communities,” said Bonchul Koo, President of LGES Michigan. “Over a decade, Holland plant has been our wholly-owned facility that stands as the forefront of our production in U.S., and also is the symbol of our steadfast partnership with the state. We will continue contributing to the State of Michigan’s ‘championship economy’ by creating a reliable and sustainable domestic battery market, creating jobs, and initiating ripple effects of environment-conscious business through supporting the drives for clean energy.”

For successful expansion, the Michigan Strategic Fund (MSF) and the City of Holland have approved the designation of the site as a Renaissance Zone, for the project valued at USD 132.6 million. On March 22, the MSF board also granted an incentive package for the project, including the following:

• Performance-based grants from Michigan Business Development Program and Jobs Ready Michigan (USD 10 million respectively)
• Community Development Block Grant funds (up to USD 36.5 million)
• 20-year Renaissance Zone (approximately USD 132.6 million worth)