LG Energy Solution Receives 60 Billion KRW Subsidy for Michigan Plant Expansion and 150 Billion KRW Tax Reduction

LG Energy Solution Electric Vehicle Battery Michigan Factory

[Asia Economy Reporter Oh Hyung-gil] LG Energy Solution has received approval for $56.5 million (approximately 68.9 billion KRW) in state subsidies and tax incentives worth $132.6 million (approximately 149.5 billion KRW) over 20 years related to its factory expansion project in Michigan, USA.

According to foreign media on the 22nd (local time), LG Energy Solution is investing $1.7 billion (approximately 2 trillion KRW) to expand the battery parts production capacity at its Holland plant, located 249 km northwest of Detroit, by five times.

The state authorities stated that this project is expected to create up to 1,200 high-quality jobs with an average annual salary of $65,000 (approximately 79.27 million KRW) by 2025. Quentin Messer, CEO of the Michigan Economic Development Corporation, said, "We look forward to the significant impact this project will have on the local economy, small businesses, and workforce."

According to documents related to the subsidy application, LG Energy Solution also mentioned that it is considering production facilities in the southeastern United States, Poland, and China.

LG Energy Solution has established three battery plants in Michigan, Ohio, and Tennessee through a joint venture with General Motors (GM), the largest automaker in the US. The location of the fourth US factory that the two companies are planning has not yet been announced.

This content was produced with the assistance of AI translation services.