LG Energy Solution to Invest $5.5bn in Battery Manufacturing Complex in Arizona

South Korea's LG Energy Solution has announced it will invest approximately $5.5 billion to construct a battery manufacturing complex in Queen Creek, Arizona. The complex will consist of two manufacturing facilities – one for cylindrical batteries for electric vehicles (EV) and another for lithium iron phosphate (LFP) pouch-type batteries for energy storage systems (ESS).

It marks the largest single investment ever for a stand-alone battery manufacturing facility in North America.

It is also more than four times the amount the company initially announced in 2022 to manufacture cylindrical EV batteries in the same location.

The company plans to invest $3.2 billion in building cylindrical battery manufacturing facility with a capacity of 27GWh, and $2.3 billion in LFP pouch-type battery facility with the capacity of 16GWh.

The new cylindrical battery manufacturing facility aims to start mass production of 2170 cells in 2025, mainly for EV makers in North America. 

Both facilities, totaling 43GWh, plan to break ground this year.

Youngsoo Kwon, CEO of LG Energy Solution, says: “Our decision to invest in Arizona demonstrates our strategic initiative to continue expanding our global production network, which is already the largest in the world, to further advance our innovative and top-quality products in scale and with speed. We believe it’s the right move at the right time in order to empower clean energy transition in the U.S.”

In February, 2023, Honda and LG Energy Solution and Honda broke ground on an EV battery plant located in Fayette County, near Jeffersonville, Ohio.