LG Energy Solution in Holland is Powering Michigan’s Future

Photo courtesy of LG Energy Solution Michigan

Over 15 years ago, Michigan helped Holland land a battery manufacturing plant. That decision seeded an industry that’s still paying off across the state today.

The latest benefit is a $1.6 billion agreement that shows how Michigan’s long-term economic development strategy can turn an early manufacturing win into lasting careers, communities where families want to put down roots and support for the state’s economy.

DTE Energy’s agreement to purchase batteries from LG Energy Solution’s U.S. energy storage division, LG Energy Solution Vertech, will help supply battery storage across eight projects over the next two years. The projects will generate an estimated $2.3 billion in total economic impact and support 1,800 jobs at the LG Energy Solution manufacturing plant, according to DTE Energy. 

“Michigan has become a strategic home for LG Energy Solution, and our agreement with DTE builds on that by helping to strengthen the grid reliability Michigan communities count on,” said Jaehong Park, president and CEO, LG Energy Solution Vertech. “Our manufacturing facility in Holland is a symbol of our steadfast partnership with the state. It has grown into a key production hub that's built on the local highly skilled workforce, manufacturing strengths and communities where many of our colleagues live and work.”  

LG’s first battery manufacturing investment in Michigan landed in Holland in 2010, with an expansion of the campus in 2022. An analysis from the W.E. Upjohn Institute for Employment Research found that every $1 in incentive cost applied to that 2022 investment is expected to generate $2.23 in benefits for Michigan residents and the Holland community. The battery storage the plant produces also gives Michigan utilities another tool to manage rising demand without compromising service for homes and businesses on the same grid. 

“By working with LG Energy Solution Vertech to bring more battery storage online through their Holland, Michigan, manufacturing facility, we're keeping Michigan at the forefront of technology and economic opportunity—creating good-paying jobs in communities while driving responsible growth, improving reliability for our customers and investing in clean energy solutions,” said Joi Harris, president and CEO of DTE Energy. 

Energy Capacity Is Economic Capacity 

Michigan is looking to this kind of reliable and flexible power to compete with other states and countries for projects that include modern factories, major healthcare systems, tech companies and the data centers that support them. DTE said that responsible development for data centers in Michigan is helping drive its battery storage investment, calling the projects an opportunity to make the “electric grid cleaner, more reliable and more resilient.” 

When a state can’t keep up with rising energy demand, it risks losing the jobs, tax base and momentum that come with economic growth. It’s why the U.S. has made battery production a priority, yet as recently as 2024, China was responsible for 80% of global battery cell production, according to the International Energy Agency. The agreement between DTE Energy and LG Energy Solution Vertech is a concrete example of how American factories can supply American grids.  

“Battery manufacturing didn’t come to Michigan by accident. It grew from the same automotive, engineering and manufacturing strengths that have powered our economy for generations,” said Michelle Grinnell, chief communications and attraction officer at the Michigan Economic Development Corporation (MEDC). “Our relationship with LG Energy Solution shows how global business attraction can build on those strengths, create good jobs in Michigan communities and produce the technology needed to support the next wave of economic growth.” 

How Holland Batteries Were Built for This Moment 

By 2005, LG Chem’s U.S. battery subsidiary, Compact Power, was operating in Troy and working with automakers on battery technology for the next generation of EVs. That southeast Michigan presence connected LG to the engineering, testing and vehicle programs shaping early EV demand. 

Then, in 2010, Michigan attracted the manufacturing side of the battery industry with Compact Power’s $303 million lithium-ion battery cell plant in Holland. The project was backed by Michigan’s first-in-the-nation battery manufacturing tax credit and a locally championed Renaissance Zone that reduced taxes in the area. 

On the federal level, a $151.4 million U.S. Department of Energy grant covered nearly half the project cost. President Barack Obama joined Gov. Jennifer Granholm in Holland to mark construction of the plant, which went on to create hundreds of jobs and supply batteries for GM and Ford vehicles. 

From Automotive to Energy Storage 

As domestic battery production became a national priority, LG Chem spun off its battery business as LG Energy Solution in 2020. Two years later, Michigan and its local partners supported the company's expansion to quintuple the Holland plant's capacity, winning the investment over competing sites in the Southeast U.S. and overseas. 

• The state brought grants for job creation and training. 

• The City of Holland approved another 20-year Renaissance Zone. 

• Allegan County carried the process for a federal grant reimbursing the company for machinery and equipment purchases. 

• Holland Board of Public Works, a community-owned utility, provided an incentive rider to reduce project costs.  

Behind that kind of continued expansion is a relationship built over time, long after the 2010 ribbon cutting. State and local leaders stayed connected with LG Energy Solution teams in Holland and Troy, and with company leadership in South Korea. That included a 2024 trip to Seoul, where Gov. Gretchen Whitmer led a Michigan delegation to meet with LG Energy Solution leadership.

As production grew in Holland, LG Energy Solution also took full control of the former Ultium Cells facility in Lansing in May 2025 and later announced a $4.3 billion agreement to supply Tesla with energy storage battery cells manufactured in Lansing. That trajectory into energy storage continued a few months later, with the LG Energy Solution Vertech announcement of its new agreement with DTE Energy. 

"LG Energy Solution's expansion into battery energy storage systems—not just electric vehicles—demonstrates the company’s adaptability and positions this region at the center of a rapidly evolving energy market,” said Mandy Cooper, interim president of Lakeshore Advantage. “Projects like this further diversify our economy into high-demand, future-focused sectors tied to energy reliability and data infrastructure. The agreement provides meaningful certainty and scale as it grows its energy storage business in Holland.” 

Community Roots: LG Energy Solution in Holland

Long-term economic development is measured in jobs and answers to new economic challenges. It’s also measured by whether a company becomes part of the community where it grows. That's shown up in how LG Energy Solution invests in the region's workforce, partnering with local organizations to make sure the talent pipeline keeps pace with the company's growth. 

"West Michigan Works! has been proud to support LG Energy Solution's growth in West Michigan through recruitment and retention initiatives, participation in hiring events and workforce development resources that help connect employers with the talent they need,” said Amy Lebednick, director of business solutions, West Michigan Works! “Our partnership has focused on helping the company build and sustain a strong workforce while creating quality career opportunities for residents throughout the region." 

The company's investment in the community goes further than employment, with LG Energy Solution Michigan sponsoring hometown traditions like Tulip Time and Holland on Ice and supporting youth sports and local parks. 

Holland is a Winning Example of a Statewide Strategy 

LG Energy Solution anchored a $1.6 billion energy storage deal in Holland because Michigan made a deliberate strategic investment more than 15 years ago. Economic development is a long game, and the state is laying that same foundation in communities across the state. Once it pays off, Holland is what success looks like.