LG Energy Solution to Invest USD 5.5 Billion to Build Battery Manufacturing Complex in Arizona

LG Energy Solution announced it will invest approximately USD 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 last year (KRW 1.7 trillion) to manufacture cylindrical EV batteries in the same location.

Out of the KRW 7.2 trillion, the company plans to invest USD 3.2 billion in building cylindrical battery manufacturing facility with a capacity of 27GWh, and USD 2.3 billion in LFP pouch-type battery facility with the capacity of 16GWh. Both facilities, totaling 43GWh, plan to break ground 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, to further advance our innovative and top-quality products in scale and with speed," said Youngsoo Kwon, CEO of LG Energy Solution. "We believe it's the right move at the right time in order to empower clean energy transition in the U.S."