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The Holland battery operation is run by LG Energy Solution Michigan, the successor to the LG Chem business that established the site in 2010. Its newest expansion was announced in 2022 as a major increase in battery-cell capacity and jobs; more recent company disclosures identify Holland as a producer of lithium iron phosphate cells for grid-scale energy storage. The announced 25 GWh expansion target and the later 16.5 GWh storage-production figure describe different dates and production scopes, and the sources do not confirm that the original target was reached.
What is LG Chem building in Holland, Michigan?
The familiar LG Chem name refers to the site’s history. The current operator is LG Energy Solution Michigan, Inc., part of LG Energy Solution, which was separated from LG Chem. The state identifies the Holland operation as the company’s first U.S. electric-vehicle battery plant, established in 2010. LG Energy Solution Michigan’s company history and the State of Michigan’s 2022 announcement document the identity and history.
The “new” facility is an expansion on LG Energy Solution’s existing Holland footprint, not a newly announced standalone company or a different Lansing plant. In March 2022, LG Energy Solution announced a $1.7 billion investment on 1.4 million square feet of vacant, company-owned land. It described the expanded site as supporting battery-cell manufacturing, testing and warehousing, with production for electric vehicles (EVs) and energy storage systems (ESS). The company also described a long-cell design intended to use pack space more efficiently and improve energy density; that was a stated design aim, not an independently verified performance result. LG Energy Solution’s 2022 project announcement sets out the planned scope.
How much battery capacity does the Holland plant produce?
The numbers need to be read by date and application rather than treated as interchangeable. In 2022, LG Energy Solution said the expansion would raise the Holland plant’s annual capacity from 5 GWh to 25 GWh by 2025, covering EV and ESS battery-cell production. These were project targets, not proof of completed capacity. In its March 2026 offering circular, LG Energy Solution reported that production at its Michigan LFP battery facility for grid-scale ESS began in May 2025, with annual capacity of 16.5 GWh. A separate 2026 company announcement also described Holland as manufacturing up to 16.5 GWh of battery-storage cells. The available disclosures do not establish that the earlier 25 GWh target was achieved or formally replaced. The 2022 announcement and LG’s 2026 disclosure provide the respective figures.
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| Figure | What it describes | Status and source |
|---|---|---|
| 5 GWh to 25 GWh annually | Planned increase in Holland capacity for EV and ESS battery cells | 2022 target for 2025, not a confirmed result; LG Energy Solution. |
| 16.5 GWh annually | Michigan LFP production capacity for grid-scale ESS | Production reported as begun in May 2025 in LG Energy Solution’s March 2026 filing; LG Energy Solution investor-relations materials. |
| Up to 16.5 GWh | Holland battery-storage cell production | Company disclosure in 2026; LG Corporation / LG Energy Solution. |
GWh, or gigawatt-hours, measures stored energy or battery capacity. LFP means lithium iron phosphate, a battery chemistry; ESS means energy storage system. In this case, LG’s current disclosures point to grid-scale stationary storage as a specific Holland product application, while the 2022 plan covered EV and ESS cells.
What does the Holland battery factory make, and where can its batteries be used?
The current production account is centered on battery-storage cells for grid-scale ESS. These cells can be assembled into larger systems that store electricity and release it when needed. A May 2026 agreement between DTE Energy and LG Energy Solution Vertech illustrates the intended utility-scale use: eight Michigan storage projects are to use systems manufactured in Holland. DTE says the systems will store electricity during periods of excess generation and dispatch it at peak demand. The agreement covers 1.5 GW of power and 6 GWh of energy, with delivery over two years; it is a procurement and delivery plan, not evidence that all eight projects are already operating. DTE Energy’s May 27, 2026 announcement describes the agreement.
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The two DTE figures measure different things: GW (gigawatts) is power, or the rate at which a system can deliver electricity; GWh is energy, or how much it can store. The 1.5 GW / 6 GWh figures should not be collapsed into a single capacity number.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How many jobs will the Holland battery plant create?
LG Energy Solution and Michigan announced a target of 1,200 new jobs tied to the 2022 expansion, with the state release describing the jobs as planned by 2025. The cited announcements establish the target, not how many positions were ultimately filled. The state’s announcement also records the public support package:
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- Two performance-based grants of $10 million each.
- Up to $36.5 million in Community Development Block Grant (CDBG) equipment reimbursement.
- A 20-year Renaissance Zone, with an estimated value of $132.6 million.
These are announced grant amounts, reimbursement ceilings and an estimated tax-zone value. They are not evidence that all funds were paid, all potential tax benefits were realized, or that a particular public return was achieved.
Quick Recap
How did the Holland battery operation develop?
- 2010: Michigan reported that LG Chem’s original $303 million, 600,000-square-foot Holland cell plant was under construction, with operation expected in 2012 and up to 400 employees anticipated. Those were projections at the time. A nearby electrolyte plant was described as in design and subject to LG Chem board review; that announcement alone does not establish that the project was built. Michigan’s 2010 release covers the plans.
- March 2022: LG Energy Solution announced the $1.7 billion expansion, a planned increase from 5 GWh to 25 GWh annually, and 1,200 targeted new jobs.
- May 2023: The company said the expanded facility’s steel framework had topped out. It reported nearly 525,000 project man-hours, more than 18,000 steel pieces and 16,000 tons of steel, while still projecting completion in 2025 and capacity of 25 GWh. These are construction-milestone figures, not production measures. LG Energy Solution Michigan’s May 2023 update describes the milestone.
- May 2025: LG Energy Solution’s later filing says production began at the Michigan LFP facility for grid-scale ESS, at 16.5 GWh annual capacity.
- May 27, 2026: DTE announced its agreement for eight Michigan storage projects using Holland-manufactured systems, with deliveries planned over two years.
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