LG Energy Solution to Establish Massive Battery Complex in Arizona
In a strategic move that marks the largest investment in North America for a stand-alone battery facility, LG Energy Solution (LGES) is set to invest $5.5 billion in Queen Creek, Arizona. This investment will create two distinct manufacturing plants focused on producing cylindrical batteries for electric vehicles (EV) and lithium iron phosphate (LFP) pouch-type batteries for energy storage systems (ESS).
With this historic investment from LGES, Arizona has become the battery manufacturing capital of the country,
stated Governor Katie Hobbs, highlighting the significance of the project. She further noted the project’s potential to enhance Arizona’s role as an innovation hub for sustainable energy.
The announced investment is a significant increase from the initially planned $1.4 billion. The company aims to allocate $3.2 billion towards the cylindrical battery plant with a 27 GWh capacity and $2.3 billion for the LFP pouch-type facility, which will offer a 16 GWh capacity. These facilities together represent a substantial addition to the region’s manufacturing landscape, with thousands of new jobs expected as construction begins this year.
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,
said Youngsoo Kwon, CEO of LG Energy Solution. He emphasized the importance of this expansion in supporting the U.S.’s transition to clean energy.
Arizona’s political leaders have praised the initiative, with senior Senator Kyrsten Sinema remarking on the project’s role in enhancing the clean energy supply chain. Senator Mark Kelly also noted the job creation and the strengthening of Arizona’s economy thanks to federal investments in clean energy manufacturing.
The new cylindrical battery facility is expected to commence mass production of 2170 cells by 2025, making it the first U.S. cylindrical battery manufacturing plant solely funded by a Korean manufacturer. Queen Creek Mayor Julia Wheatley expressed enthusiasm for the project, citing its potential to drive economic benefits for the region.
Pinal County Supervisor Mike Goodman highlighted the importance of local job creation, which will help residents find high-paying employment within the county. The state-of-the-art facilities will use a smart factory system to improve productivity and respond to increasing battery demand.
This expansion is part of a recent wave of battery-related developments in Arizona, including Ecobat’s lithium-ion recycling facility in Casa Grande and new manufacturing operations by American Battery Factory and Sion Power in Tucson.
For more information about LG Energy Solution and its global initiatives, visit news.lgensol.com. To learn more about the Arizona Commerce Authority and its economic development efforts, visit azcommerce.com.
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