MEDC governing board extends deadlines for LG, Magna projects

The Michigan Strategic Fund board voted Tuesday to extend deadlines for two previously approved projects.

The governing body of the Michigan Economic Development Corp. agreed to extend milestone deadlines for LG Energy Solution's expansion of its Holland electric-vehicle battery plant, which was previously approved for a $10 million Michigan Business Development Program grant and a $10 million grant from the Jobs Ready Michigan Program. The board had approved the grants in March 2022.

The Korean manufacturer will quintuple the plant's capacity by building several new facilities. The $1.7 billion project is expected to increase the company's annual capacity to 25 gigawatt hours and add 1,200 jobs.

LG Energy Solution has begun work on the site in Holland, however, it requested an extension due to unexpected delays in construction and project rollout, according to the MEDC.

The board extended the deadlines for three milestone disbursements for the Jobs Ready Michigan Program grant from May 30, 2023, to Dec. 31, 2024; Dec. 31, 2024, to Dec. 31, 2025, and Dec. 31, 2025, to Dec. 31, 2026, as well as extending the term of the agreement from June 30, 2026, to June 30, 2027. The term of the agreement for the Michigan Business Development Program grant was extended from June 30, 2026, to June 30, 2027.

In January, the board approved a 60-day extension for LG Energy Solution to formally enter into an agreement with the MEDC for its project. At the time, the company couldn't execute the agreement within the allowable 180 days due to "administrative limitations," according to the MEDC.

The MSF board also agreed to extend a milestone deadline related to hiring by Magna International Inc. as the automotive supplier expands its footprint in Michigan.

In October, the board approved a $2.9 million grant for Magna under the Michigan Business Development Program for its plan to lease a 114,000-square-foot seating facility at 12240 Oakland Blvd. in Highland Park.

“The Company successfully executed the lease for the Highland Park facility and the Company has created 420 of the 490 new jobs related to the project,” MEDC staff wrote in a briefing memo. “Due to an unexpected delay by its customer, the Company is requesting 18 more months to create the 490 new jobs. The Company is confident that with the MSF’s approval, the project will be completed within the new timeframe.”

The board agreed to extend the milestone from June 30, 2023, to Dec. 31, 2024, and extend the term of the agreement from Dec. 31, 2023, to June 30, 2025.

The project is to result in a capital investment of up to $3.77 million, according to the MEDC.

cwilliams@detroitnews.com

Twitter: @CWilliams_DN