Expected to break ground this year, the new battery complex will include a facility to manufacture cylindrical batteries for EVs and a lithium iron phosphate pouch-type batteries plant for ESS, which will have a combined capacity of 43GWh
LGES to invest $5.5bn to develop battery a manufacturing complex in Arizona. (Credit: LG Energy Solution)
LG Energy Solution (LGES) has announced an investment of nearly KRW7.2 trillion ($5.5bn) to develop a battery manufacturing complex in Queen Creek, Arizona.
The new battery complex will cater to both electric vehicles (EVs) and energy storage systems (ESS).
It will include a facility to manufacture cylindrical batteries for EVs as well as a lithium iron phosphate (LFP) pouch-type batteries plant for ESS, said the South Korean battery manufacturer.
LGES CEO Youngsoo Kwon said: “Our decision to invest in Arizona demonstrates our strategic initiative to continue expanding our global production network, which is already the largest in the world, to further advance our innovative and top-quality products in scale and with speed.
“We believe it’s the right move at the right time in order to empower clean energy transition in the U.S.”
LGES intends to invest KRW4.2 trillion ($3.2bn) in constructing the cylindrical battery manufacturing facility, which is expected to have a capacity of 27GWh.
The remaining KRW3 trillion ($2.3bn) will be invested in the LFP pouch-type battery facility, which will have a capacity of 16GWh.
The facilities with a total capacity of 43GWh are anticipated to break ground this year.
LGES expects to commence the mass production of 2170 cells in 2025 at the new cylindrical battery plant, which will primarily serve North American EV manufacturers.
The LFP pouch-type batteries plant is aimed to begin production in 2026.
According to LGES, the Arizona complex is the largest single investment made for a stand-alone battery manufacturing facility in North America.
Last year, the company announced an investment of KRW1.7 trillion ($1.3bn) to manufacture cylindrical EV batteries in the same location.
Through the investment, LGES seeks to meet the fast-growing needs for domestically manufactured batteries driven by the Inflation Reduction Act and to further accelerate the clean energy transition in North America.