LG Electronics Is Building US Factory for Electric Car Parts in Michigan
When it comes to new cars, most people realize that the automaker itself often doesn’t make the majority of its vehicle parts and simply contracts the rest from suppliers. With electric vehicles, this is especially true, with many automotive batteries (like those on the Chevy Bolt) being produced by South Korean firms like LG Electronics.
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LG Electronics has been doing very well at this apparently, as it has announced that it will be expanding its business stateside with a new factory in the Detroit suburb of Hazel Park, Michigan. The new factory should be up and producing components for electric vehicles starting in 2018.
Of course, the new factory is only a part of what LG announced for Michigan. The whole project would include the new factory as well as expanding its R&D Center in Troy, Michigan, for a total of 292 new jobs and an investment of about $25 million, supported by a grant from the state of $2.9 million over the next four years. Michigan will also provide LG with hiring and training assistance.
Meanwhile, LG is also investing in a new washing machine plant in Tennessee and expanding its North American Headquarters in New Jersey.
Michigan seems like the perfect place for LG to set up shop if it wants to be close to its customers—General Motors in particular. GM currently manufactures its electric Bolt at the Orion Assembly plant in Lake Orion, Michigan, while the plug-in hybrid Volt is made right next door in the Detroit/Hamtramck Assembly plant.