The new capacity will be used to produce large lithium-ion batteries and packages for electric vehicles. Among customers are Ford, General Motors, Chrysler and Tesla – all automakers are rapidly increasing production capacity as they plan to increase EV sales worldwide.

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“We know that the competition at these battery plants nationally and globally is really high,” said Amanda Murray, vice president of business solutions. Lakeshore advantagethe economic development agencies of Alegan and Ottawa counties, Bridge Michigan reported.

“Such projects will really strengthen Western Michigan as a leader in the future of car electrification.”

The Michigan Strategic Foundation on Tuesday approved $ 189 million as an incentive to expand LG, and the company is looking for other funding that could bring total incentives to $ 525 million.

Incentives appear when Michigan is looking for a foothold in the highly competitive EV sector, as about a dozen major battery factories sell sites across the United States

“I don’t know that we will ever see such a big project again,” Murray said. “… It will have a big impact on the future of the local economy.”

It’s also important to the state, Michigan Bridge Quentin Messer Jr., president and CEO of the Michigan Economic Development Corporation, said Tuesday.

“It’s incredibly important for us to maintain and expand the businesses that have already made Michigan our home,” Messer said.

Michigan is also continuing to try to attract new investment in EVs, hoping to maintain its advantage in car design and manufacturing.

“It allows us to be in a better position to win additional future investments by securing these,” Messer said.

Among the benefits of the expanded factory complex in the Netherlands will be new jobs, Murray said. The state said LG is expected to finish hiring by 2025, and the average wage rate for new jobs will be $ 31.47 per hour, or about $ 65,000 a year.

The average family income in Allegan County was $ 63,734 in 2020, which is the last available year.

But no less important, she said, will be suppliers of cars that produce battery parts, which are likely to move to the region so they can be close to LG.

The company already employs 1,495 people in Michigan, where it has been working in the Netherlands since 2010. The new facility will include the main production building, warehouse, administrative offices and a room for quality testing.

State incentives were presented during a meeting of the Michigan Strategic Fund, a state funding unit Michigan Economic Development Corporation.

The money will be allocated to tax breaks, labor training and a grant based on the achievement of overall employment rates. Additional funding from other sources will also benefit LG’s expansion.

Initially, the company was looking for at least $ 525 million, according to the memo from the city of Holland are discussing the proposal in January.

Eventually, total incentives from several sources, including the state, could reach that amount, Murray said. Details of future inquiries were not available Tuesday.

The Michigan Strategic Foundation has approved a number of incentives for LG:

  • $ 132.6 million in property tax cuts over 20 years Renewable Energy Renewal Zone;
  • $ 10 million from a business development program grant that is based on whether the company is meeting the goal of hiring 1,200 people;
  • $ 10 million in a grant from the Jobs Ready Michigan Program to assist with training and hiring;
  • Up to a $ 36.5 million community development grant in Allegan County to compensate the company for the purchase of machinery and equipment;
  • $ 50,000 to Allegan County for administration grants.

The company’s additional awards so far amount to $ 35 million:

  • $ 5.18 million from West Michigan Works !, which supports this project through a hiring and training workforce plan;
  • $ 14.5 million for training new jobs in Michigan through Grand Rapids Community College;
  • $ 1.7 million New market tax credit from The capital of Michigana nonprofit public-private partnership supported by the MEDC and the Michigan Office of Housing Development;
  • $ 2.9 million in city tax cuts;
  • $ 10 million for a new electrical substation from the Dutch Public Works Council;
  • $ 1 million from the Netherlands’ economic development funds.

Incentives were not funded by the state $ 1 billion SOAR fund, which was approved in late 2021 for the state to implement large-scale projects that can be considered transformational.

By January, the Michigan Strategic Fund had awarded the first round of SOAR funding: About $ 666 million went to General Motors for expanding the state by $ 7 billion, including a new battery plant in Lansing.

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