LG Energy Solution said it expects to begin production at its stand-alone facility in about two years.
SEOUL, South Korea—The construction of a major battery manufacturing complex in Arizona, announced by LG Energy Solution in 2023, is reported to be on track for completion in two years, LG Energy Solution said in a company release. The company said it expects to begin the first round of hiring at the end of 2024.
The complex consists of two manufacturing facilities, the company’s first stand-alone cylindrical and energy storage systems (ESS) battery plants in North America. The cylindrical battery plant, called LG Energy Solution Arizona, will produce 46-Series batteries for electric vehicles (EV). The energy storage systems (ESS) battery manufacturing facility, called LG Energy Solution Arizona ESS, will produce lithium iron phosphate (LFP) pouch-type batteries for energy storage systems. It is one of the first ESS-exclusive battery production facilities in the world, 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).
LG Energy Solution provided progress updates on its USD 5.5 billion (KRW 7.2 trillion) stand-alone facility during a stakeholder meeting in April at Combs High School in San Tan Valley, near the town of Queen Creek, where the complex is located.
During the construction progress updates and site tour, Richard Ra, president of LG Energy Solution Arizona, said the project has been well underway since the groundbreaking last November. With construction going as planned, 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, the company said.
Once construction is complete, both facilities are expected to start production in 2026. To secure a high-quality workforce that will operate the state-of-the-art manufacturing complex, the company said it will commit to hiring and fostering the next-generation battery professionals in the area, creating several thousand new quality jobs.
“We expect the recruitment of our [launch team] members to begin late this year, and a full-scale recruitment to follow from the second half of 2025,” said Ra.
“Of many other sites, this Arizona facility has a special meaning to us,” said Brian Oh, head of Mobility and IT Battery Division at LG Energy Solution, in the release. “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 [United States]. Right here, is where we can build quality cylindrical batteries, which will be used to power millions of EVs.”
“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, in the release. “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.”
“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,” said Arizona Governor Katie Hobbs, in a statement. “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 that was built a decade ago. It is currently undergoing expansion that would quintuple its average annual production capacity. The company also has five other joint venture facilities in the United States with major automakers, including General Motors, Honda, and Hyundai Motors Group. According to LG Energy Solution, they represent its “full-fledged efforts to provide IRA-compliant batteries that will expedite the clean energy transition in the country.”