The first shipments of lithium-ion batteries have left LG Chem’s battery plant in Holland, Michigan earlier this month after three years of setbacks and delays including a significant fine from the US Government.
The South Korea-based advanced battery maker suffered through a series of setbacks, including more than US$2m in fines by the US government for misusing federal funds.
LGCMI, which built the plant with the help of more than US$150m in federal stimulus funds, repaid US$842,189 to the US Department of Energy in January after allegations surfaced of employees playing board games, watching movies and performing community service on company time.
It also agreed to pay the federal government US$1.2m to resolve allegations it improperly sought and obtained federal funds to pay workers engaged in volunteer and recreational activities, according to a settlement announced by the US Department of Justice earlier this month.
A hiccup in the manufacturing process, stemming from an ingredient used in battery production not being properly registered with the Environmental Protection Agency, further stalled attempts to ramp up production in early September.
David Lee, LGCMI’s chief financial officer, told The Holland Sentinel that as demand increases for lithium-ion car batteries, the parent company is poised to increase production and add more jobs in the future.
