LANSING, Mich. (AP) — Electric vehicle battery maker LG Energy Solution plans a $1.7 billion expansion in western Michigan that will add up to 1,200 jobs by 2025, officials announced Tuesday.

The project at the company’s site in Holland, located about 155 miles northwest of Detroit, was approved for $56.5 million in state grants and a 20-year tax break worth $132.6 million.

Michigan Economic Development Corp. CEO Quentin Messer Jr., who chairs the Michigan Strategic Fund, said the expansion will quintuple the plant’s ability to produce battery components. The average wage will be $1,257 a week, or about $65,000 annually, plus benefits.

A state memo requesting the incentives says LG Energy Solution was considering facilities in the southeastern U.S. and potentially in Poland and China.

The company, which is headquartered in South Korea, could begin hiring later this year.