LG Energy Solution to Complete $5.5B Stand-Alone Battery Manufacturing Facility in Arizona Within 2 Years

April 5, 2024
Once fully operational, the complex's average annual production capacity is expected to reach 53 GWh - this includes 36 GWh of cylindrical batteries and 17 GWh of LFP ESS batteries

LG Energy Solution announced that construction of its second $5.5 billion major battery manufacturing complex, located in Arizona, will be completed within two years, and the first round of hiring is projected to commence in Q4 2024.

The complex will consist of two manufacturing facilities, which are the company's first stand-alone cylindrical and energy storage system (ESS) in North America

The cylindrical plant - called LG Energy Solution Arizona - will produce 46-Series batteries for electric vehicles (EVs). The ESS battery manufacturing facility - called LG Energy Solution Arizona ESS - will produce lithium-ion phosphate (LFP) pouch-type batteries for energy storage systems. 

By constructing its stand-alone ESS battery facility in North America, LG Energy Solution anticipates a timely response to the fast-growing need for locally manufactured batteries in the US.

"ESS plays a vital role in green energy infrastructure as it utilizes power supply in a flexible manner," said Hyung Kim, Head of ESS Battery Division. "There is no better place to build the source of our sustainable energy here in Arizona, where the abundant solar energy surrounds the region. Quality batteries, made right here in the Copper State, will reach every corner of America to provide power."

Once fully operational, the complex's average annual production capacity is expected to reach 53 GWh - this includes 36 GWh of cylindrical batteries and 17 GWh of LFP ESS batteries. 

LG Energy Solution projects that construction on the cylindrical EV batteries manufacturing facility will be completed by 2025, and the LFP ESS batteries facility will be completed in 2026. Production at both facilities will commence in 2026.

To secure a high-quality workforce to operate the manufacturing complex, the company will hire and foster the next generation of battery professionals in the area, creating several thousand new jobs. 

"Of many other sites, this Arizona facility has a special meaning to us. This is the second stand-alone facility to be built in the U.S. And it is also the first manufacturing facility to produce cylindrical batteries in the U.S. Right here, is where we can build quality cylindrical batteries, which will be used to power millions of EVs," said Brian Oh, Head of Mobility & IT Battery Division at LG Energy Solution.