LG Energy Solutions announces major investment in Arizona, driving battery manufacturing to support renewable energy

LG Energy Solution (LGES) last Friday announced a historic investment of $5.5 billion into building a new battery manufacturing complex in Queen Creek, Arizona. This new facility will be the single largest investment in a standalone battery manufacturing complex in U.S. history.

“With the addition of yet another global battery innovator, Arizona has become a central hub of energy storage and recycling technologies,” said Sandra Watson, president and CEO of the Arizona Commerce Authority.

LGES is a global leader in energy manufacturing, with products ranging from lithium-ion batteries that support electric vehicles to energy storage systems that can expand the use of clean energy. The Queen Creek complex will be the first U.S. cylindrical battery facility invested solely by a Korean battery manufacturer.

After initially announcing a $1.4 billion investment, LGES nearly quadrupled its investment in building two facilities: one specializing in cylindrical batteries for electric vehicles (EV) and another focused on LFP pouch-type batteries for energy storage systems (ESS), with a combined capacity of 43 GWh.

The complex is expected to create thousands of new jobs and start mass production of 2170 cells in 2025, which will mainly be used to support EV makers in North America. 

“We believe it’s the right move at the right time in order to empower clean energy transition in the U.S,” said Youngsoo Kwon, CEO of LG Energy Solution. 

This investment follows a string of recent expansions in battery manufacturing in Arizona. 

Last fall alone, KORE Power secured funding for a new manufacturing plant in Buckeye, American Battery Factory announced a $1.2 billion investment in a new lithium-ion battery facility that will create 1,000 new jobs, and Sion Power announced an expansion of its Tucson facility.

Battery recyclers are also adding to Arizona’s growing battery ecosystem. 

Last month, Ecobat announced it will build a new lithium-ion battery recycling plant in Casa Grande. This news follows the opening of Li-Cycle’s new facility in Gilbert and the announcement of a new Cirba Solutions plant in Eloy last year.

These investments will support an expanding clean energy sector in the state, including EV automakers and innovators in biodegradable materials, solar module manufacturing, and agritech.

“With this historic investment from LGES, Arizona has become the battery manufacturing capital of the country,” Gov. Katie Hobbs said. “These Arizona-made batteries will power green, sustainable technologies around the world, cementing Arizona’s reputation as an innovation hub for renewable energy.”

Craig Ruiz

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