LG Electronics is building a 250,000-square-foot EV parts plant in the Detroit suburb of Hazel Park. It will start production in 2018 and will employ nearly 300 people, it said Tuesday.
LG is the primary electronic components manufacturer for the Chevy Bolt, Autoblog's Technology Car of the Year. In fact, it produces most of the key powertrain components — the Bolt's electric motor, battery cells and pack, power inverter, power distribution module, onboard charging systems — along with the car's battery heater, accessory power module, climate control, instrument panel and infotainment system.
Proximity of the plant to Detroit-area manufacturing is key for two reasons: The Bolt is assembled up the interstate at GM's Lake Orion facility, and locating the plant here instead of overseas helps overcome import issues.
The $25 million plant is getting a $2.9 million boost over the next four years from a capital grant under the Michigan Business Development Program. LG also will receive hiring and training assistance from the state, and from the cities of Hazel Park and Troy.
LG globally has earned about $1.5 billion in revenue so far this year from building car components, an increase of 43 percent over the same period last year. LG produces components for cars other than the Bolt, and as more automakers move from internal combustion engines to electricity, that revenue is poised to grow.