LG Energy Solution Ltd., a leading player in the global battery market, announced its ambitious $5.5 billion battery complex in Arizona, marking a significant milestone in its strategy to capture the North American electric vehicle (EV) and energy storage systems (ESS) sectors. Slated for completion within two years, this initiative represents the company’s largest independent investment in the US to date, underscoring its commitment to the burgeoning EV market.
Situated in Queen Creek, the complex is designed to feature two state-of-the-art manufacturing plants—one dedicated to cylindrical batteries for EVs and another for lithium iron phosphate (LFP) pouch-type batteries for ESS. This strategic setup aims to produce an impressive annual output of 53 gigawatt hours (GWh), with 36 GWh allocated for EV batteries and 17 GWh for ESS batteries, enhancing LG’s production capabilities significantly.
Construction timelines indicate the cylindrical battery plant will be operational by late 2025, followed by the LFP battery facility in 2026. This expansion not only solidifies LG’s presence in the EV and ESS markets but also contributes to the economic growth of Queen Creek and the wider Arizona region through the creation of several thousand high-quality jobs, beginning recruitment efforts by the end of this year.
The announcement was made during a stakeholders’ meeting in Queen Creek, attended by LG executives and prominent US figures, including Arizona Governor Katie Hobbs and Queen Creek Mayor Julia Wheatley. Governor Hobbs lauded the project for its potential to drive the nation towards its clean energy objectives, highlighting the transformative impact of LG’s investment.
The cylindrical battery plant, named LG Energy Solution Arizona, is set to pioneer the mass production of 46-series batteries, boasting an energy density five times that of the batteries currently prevalent in EVs. Meanwhile, the LG Energy Solution Arizona ESS facility is poised to become one of the world’s first ESS-exclusive battery plants, targeting the largest ESS market in North America.
This Arizona complex is part of LG Energy’s broader strategy to enhance its manufacturing footprint in the US, which includes an expansion of its Michigan facility and partnerships with major automakers through joint ventures. With the recent commencement of mass production at Ultium Cells LLC’s second plant in Tennessee, a joint venture with General Motors, LG Energy is steadfastly increasing its production capacity to meet the escalating demand for high-performance electric cars.
LG Energy Solution’s comprehensive investment and expansion efforts in the US reflect its strategic vision to lead the transition to green energy and electric mobility, leveraging advanced manufacturing capabilities and partnerships to deliver cutting-edge battery solutions.
