LG Energy Solution's $5.5B battery facility to be completed by 2026

LG Energy Solution’s $5.5B battery facility to be completed by 2026

LG Energy Solution said the cylindrical battery plant, called LG Energy Solution Arizona, will produce 46-Series batteries for EVs.

The construction of a major battery manufacturing complex in Arizona, announced by LG Energy Solution last year, is on track to be completed in two years with the first round of hiring expected to begin at the end of this year. The company provided progress updates on its $5.5 billion stand-alone facility during a stakeholder meeting on April 3 at Combs High School in San Tan Valley near the town of Queen Creek where the complex is located.

The attendees included Brian Oh, head of mobility and the IT battery division at LG Energy Solution; Hyung Kim, head of ESS battery division at LG Energy Solution; Richard Ra, president of LG Energy Solution Arizona; Gov. Katie Hobbs of Arizona; Sandra Watson, president and CEO of Arizona Commerce Authority; Mike Goodman, supervisor and chairman of Pinal County; Julia Wheatley, mayor of Queen Creek, and other members of state government and local community officials.

The complex consists of two manufacturing facilities which are the company’s first stand-alone cylindrical and ESS battery plants in North America. LG Energy Solution said the cylindrical battery plant, called LG Energy Solution Arizona, will produce 46-Series batteries for EVs. The company said 46-Series cylindrical batteries demonstrate LG Energy Solution’s advanced technological leadership throughout various applications for EVs.

The ESS battery manufacturing facility, called LG Energy Solution Arizona ESS, will produce lithium iron phosphate (LFP) pouch-type batteries for energy storage systems (ESS), the company said. When fully operational, the complex’s average annual production capacity is expected to reach 53GWh (cylindrical batteries 36GWh, LFP ESS batteries 17GWh).

During the construction progress updates and site tour, Ra said the project has been well underway since the groundbreaking last November, with initial land preparations completed and steel beams now being placed at the site. The manufacturing facility for cylindrical EV batteries is expected to be completed in late 2025, and the facility for LFP pouch-type ESS batteries in the following year.

Once the construction is complete, both facilities are expected to start production in 2026, LG Energy Solution said.

“This transformative investment will have a lasting impact not only in Arizona, but across the country and moves us one step closer toward our clean energy goals,” Governor Katie Hobbs said. “These are the jobs of the future – and the State of Arizona is committed to being an active partner in ensuring Arizonans have the skills to fill these jobs.”

LG Energy Solution has another stand-alone facility in Michigan, which was built a decade ago and is currently undergoing an expansion that would quintuple its average annual production capacity, the company said. The company also has five other joint venture facilities in the U.S. with major automakers, including General Motors, Honda and Hyundai Motors Group.

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