Battery plant is confirmed for Holland

Mar 13, 2010 — Detroit Free Press

Jewel Gopwani

Mar. 13, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- Korean battery maker LG Chem and its U.S. subsidiary Compact Power on Friday 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 is to break ground this summer, is to be 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," said Jae Ham, senior vice president of LG Chem, in a statement Friday.

The factory is to be able to make enough lithium-ion battery cells for 50,000 to 200,000 vehicle battery packs a year.

LG Chem's new 650,000-square-foot lithium-ion battery plant is one of four projects under way in Michigan that are using federal grants meant to jump-start advanced battery production in the U.S.

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.

"With this announcement, Holland becomes the center of lithium-ion manufacturing in North America," said Randy Thelen, president of western Michigan economic development group Lakeshore Advantage, in a statement.

Johnson Controls (NYSE:JCI PRZ) (NYSE:JCI) , through its joint venture with French battery company Saft, is retrofitting a lithium-ion battery factory in Holland.

A123Systems and Dow Kokam also plan to build advanced batteries in Michigan.

Contact JEWEL GOPWANI: 313-223-4550 or jgopwani@freepress.com.

Newstex ID: KRTB-0048-42862967