LG Energy Reveals Progress on $5.5 bn Battery Manufacturing Complex in Arizona

By Editor


LG Energy Solution’s project to construct a major battery manufacturing complex in Arizona remains on course, with expectations of completion within two years.

The company’s recent updates suggest progress is steady, with hiring slated to commence by year’s end. This development was outlined during a stakeholder meeting held on April 3 at Combs High School in San Tan Valley, situated near the complex’s location in Queen Creek.

In attendance were key figures including Brian Oh, Head of Mobility & IT Battery Division, and Hyung Kim, Head of ESS Battery Division, both representing LG Energy Solution. Also present were Richard Ra, President of LG Energy Solution Arizona, Governor Katie Hobbs of Arizona, Sandra Watson, President and CEO of Arizona Commerce Authority, local officials such as Mike Goodman, Supervisor and Chairman of Pinal County, and Julia Wheatley, Mayor of Queen Creek, among others.

The complex comprises two manufacturing facilities, marking LG Energy Solution’s maiden stand-alone cylindrical and ESS battery plants in North America. The cylindrical battery plant, dubbed LG Energy Solution Arizona, will focus on producing 46-Series batteries tailored for electric vehicles (EVs).

These batteries are set to undergo mass production at the company’s Ochang plant in Korea later this year. This strategic move positions LG Energy Solution Arizona to sustain this momentum and bolster its manufacturing capacity.

The accompanying ESS battery manufacturing facility, LG Energy Solution Arizona ESS, will specialize in manufacturing lithium iron phosphate (LFP) pouch-type batteries designated for energy storage systems (ESS). Notably, it stands as one of the pioneering ESS-exclusive battery production sites globally.

The complex is projected to boast an average annual production capacity of 53GWh, encompassing 36GWh for cylindrical batteries and 17GWh for LFP ESS batteries.

The cylindrical EV battery facility anticipates completion by late 2025, followed by the LFP pouch-type ESS battery facility in the subsequent year. Both facilities are poised to commence production in 2026.

LG Energy Solution’s Arizona venture adds to its existing manufacturing footprint, which includes a stand-alone facility in Michigan undergoing expansion and several joint ventures with major automakers across the U.S.

David Kim, CEO of LG Energy Solution, has affirmed the company’s commitment to innovation and market competitiveness, emphasizing their intention to continue expanding their product portfolio and maximizing customer value globally.

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