(gigaom.com) — Regardless of all the possible benefits of having a battery manufacturing industry in the U.S. for plug-in vehicles, building out that fledgling industry won’t come cheap. This morning an announcement from LG Chem — the Korean electronics behemoth whose U.S. subsidiary Compact Power will supply lithium-ion cells for General Motors’ (GM) upcoming Chevy Volt — offers a reminder of the big investments that lie ahead. LG Chem said today that it plans to build its first U.S. plant for battery cells — a $303 million project — in Holland, Mich.
LG Chem plans to finance the project with a $151.4 million grant awarded by the Department of Energy last summer. That battery grant program requires winners to share at least half the project costs, and LG Chem will invest $151.5 million in the new facility. Groundbreaking is scheduled to kick off this summer, according to today’s release, with full-scale operation targeted for 2012. By 2013, LG Chem expects the plant to create more than 400 jobs.
The siting of this project marks a win for the city of Holland in a time when local and state governments across the country are competing aggressively to woo government-backed battery makers. The Holland Sentinel writes this morning that the DOE grant was awarded for “lithium-ion battery cell production for one of three Michigan cities, including two closer to Detroit.”
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Source: cnn.com
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