LG Energy Solution has been awarded a $1.7 billion incentive package to expand its battery manufacturing facility in Holland, Michigan.
The Michigan Economic Development Corp has confirmed the project will create up to 1,200 new jobs, paying an average of $1,257 per week plus benefits.
The Seoul-based firm, which was spun off from parent LG Chem in January, has been authorized for $56.5 million in incentives and a $132.6 million 20-year tax cut.
LG is planning the creation of “several new facilities” that will massively increase the plant’s capacity to build battery components.
The project includes the development of a cell manufacturing facility to supply electric vehicles, as well as areas for safety testing and hazardous waste storage.
LG also considered facilities in the south-eastern U.S., Poland and China.
The state memo requesting the incentives said: “It is vital that the company get the incentive support it needs to remain competitive with other locations while being enabled to continue to improve the employee culture in Holland
LG has had a presence in Holland since 2009 and hires 1,495 people in Michigan. The facility at present has five gigawatt-hours of capacity, according to LG.