HOLLAND, Mich. (WOOD) — New production lines are up and running at the LG Energy Solution plant in Holland, but they aren’t making EV batteries as originally planned.

Construction on the massive $1.4 billion expansion started in 2022 at LG Energy Solution Michigan facility, which first opened at 1 LG Way off of 146th Avenue in 2011. Now, the expansion is up and running, and on Tuesday, the company hosted an event to offer a first look.

The LG Energy Solution Michigan plant in Holland. (Courtesy LG Energy Solution)

The new expansion is producing lithium-iron phosphate batteries, which will be used in energy storage systems. The plant will start producing ESS battery modules in August. It will output 16.5GWh annually, the company says, while the rest of the plant has a capacity of 5GWh for electric vehicle battery components.

When the company first announced the expansion in 2022, the plan was to continue the plant’s work of producing lithium-ion batteries for electric vehicles. But as automakers saw less demand for electric vehicles than expected and as the U.S. energy grid becomes more strained — in part due to AI data centers — LGES shifted the expansion to LFP batteries for energy storage systems. The ESS will support the grid and capture electricity from sources like wind and solar.

The LG Energy Solution Michigan plant in Holland. (Courtesy LG Energy Solution)

The decision to shift gears was made about two years ago, LG Energy Solution CEO Jaehong Park told reporters Tuesday.

“There were multiple drivers at the time. We found that the EV demand was down,” he said. “Plus there was always concern whether we can have enough engineering resources, technicians, in the facility.”

The goal is to turn West Michigan into an energy hub.

The LG Energy Solution Michigan plant in Holland. (Courtesy LG Energy Solution)
The LG Energy Solution Michigan plant in Holland. (Courtesy LG Energy Solution)
The LG Energy Solution Michigan plant in Holland. (Courtesy LG Energy Solution)
The LG Energy Solution Michigan plant in Holland. (Courtesy LG Energy Solution)
The LG Energy Solution Michigan plant in Holland. (Courtesy LG Energy Solution)
The LG Energy Solution Michigan plant in Holland. (Courtesy LG Energy Solution)
The LG Energy Solution Michigan plant in Holland. (Courtesy LG Energy Solution)
The LG Energy Solution Michigan plant in Holland. (Courtesy LG Energy Solution)
The LG Energy Solution Michigan plant in Holland. (Courtesy LG Energy Solution)

“We’re very committed to this facility, this community,” a speaker said at Tuesday’s event. “We’re really looking forward to working with all of you to make West Michigan the hub of energy storage manufacturing in North America.”

The expansion comes as South Korea-based LG Energy Solutions works to expand its footprint in Michigan and throughout the country. It is also working on a plant in the Chicago area and recently acquired a plant in Lansing, the company said.