Government-Sponsored Do-Nothing Battery Plant Finally Plans To Do Something

Bertel Schmitt
by Bertel Schmitt

South Korean LG Chem will finally begin commercial battery production at its Holland , Michigan, in July, Reuters says. The batteries will initially help power GM’s Volt.

Three years ago, at a groundbreaking ceremony for an LG Chem Battery plant in Holland, Michigan, President Obama promised that this and other pants will be “a boost to the economy in the entire region.” The plant made headlines for doing nothing.

Half of the plant’s $300 million price was funded by the tax payer, courtesy of a $150 million government grant. Its workers “had little work to do and were spending time volunteering at local non-profit organizations, playing games and watching movies at the expense of the federal government and taxpayers,” Gregory Friedman, inspector general at the Department of Energy, concluded in a report.

The has not started production because “demand for electric vehicles such as the Volt has been lower than expected,” LG Chem told Reuters.

How many batteries will be built is unknown, but “volume is expected to consistently increase depending on the electric vehicle market and securing additional contracts,” LG Chem promises.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Mr Imperial Mr Imperial on May 06, 2013

    Everyone should have seen my state's former Governor "Grandmole", proud as a peacock toting this waste of funding. How these politicians sleep at night amazes me.

  • Wumpus Wumpus on May 06, 2013

    LG? Presumably it had to be LG and not Samsung because Samsung is too busy making/buying all the batteries they can to build androids. Between them, Apple, and the other gizmo manufacturers, batteries do not have a funding problem. But, but, but, the pork must flow!

  • Thelaine Thelaine on May 06, 2013

    It's gonna suck working there now, cuz of having to make stuff. The bosses used to be cool and let us watch movies. Plus, Cheetos. Now they're all like, dude, assemble stuff! It blows. I'm all like, sore or whatever.

  • Wmba Wmba on May 07, 2013

    Electric vehicles, one more thing nobody asked for except for the overly eco-conscious who have no money to buy them, and the band of conspiracy theorists who are still concerned why GM took the EV1 off the market. Can only happen in societies where everyone has full bellies and too much spare time to think up problems. Happens mostly with upper level bureaucrats.

    • SCE to AUX SCE to AUX on May 07, 2013

      Combined: 57,966 Volts and Leafs sold worldwide last year. Some of them even vote Right. "Can only happen in societies where everyone has full bellies..." Lots of things can only happen in such societies; EVs are about the least worrisome.

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