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LG Chem Targets July Launch for U.S. Battery Cell Production
LG Chem Ltd. says its U.S. affiliate will begin commercial battery cell production at its unused plant in Holland, Mich., in July.
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LG Chem Ltd. says its U.S. affiliate will begin commercial battery cell production at its unused plant in Holland, Mich., in July. The South Korean company signaled its intent last month.
The $304 million facility was built more than a year ago but never used. Output will enable local production of cells for the Chevrolet Volt extended-range hybrid, which are currently supplied by an LG Chem factory in Korea. GM assembles the Volt's battery at a plant in Brownstown Township, Mich.
The 650,000-sq.-ft. LG Chem factory was designed to operate five assembly lines and make enough lithium-ion cells per year to power 200,000 electric vehicles. The company has set up three lines so far. It says it hopes to add the remaining two by September 2015, pending sufficient demand.
LG Chem used a $151 million U.S. Dept. of Energy grant to help build the facility. The company came under withering criticism from DOE's Office of Inspector General in March for spending $842,000 of the funds to pay plant employees who devoted their work day to watching movies, playing video games and doing volunteer work in the community.
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