LG Energy Solution’s ambitious project to construct a major battery manufacturing complex in Arizona is progressing smoothly, with completion expected within two years. The company provided updates on its USD 5.5 billion facility during a stakeholder meeting at Combs High School near Queen Creek, where the complex is situated.
The complex comprises two manufacturing facilities, marking LG Energy Solution’s first stand-alone cylindrical and ESS (Energy Storage System) battery plants in North America. The cylindrical battery plant, named LG Energy Solution Arizona, will produce 46-Series batteries for electric vehicles (EVs), showcasing the company’s technological prowess in EV battery applications.
As LG Energy Solution plans to commence mass production of 46-Series batteries at its Ochang plant in Korea in the second half of this year, the Arizona facility is poised to uphold this momentum and bolster manufacturing capabilities.
The ESS battery manufacturing facility, known as 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 globally. By locating this stand-alone ESS battery facility in North America, LG Energy Solution aims to meet the rapidly growing demand for locally manufactured batteries, particularly in the U.S., the world’s largest ESS market.
Upon completion, the complex is expected to have an average annual production capacity of 53GWh, with cylindrical batteries accounting for 36GWh and LFP ESS batteries for 17GWh.
Richard Ra, President of LG Energy Solution Arizona, expressed confidence in the project’s progress, stating, “With the 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.”
In addition to the Arizona complex, LG Energy Solution has a stand-alone facility in Michigan undergoing expansion to increase its production capacity fivefold. The company also operates five other joint venture facilities in the U.S. with major automakers, emphasizing its commitment to providing IRA (Industry Reinvestment Act)-compliant batteries to expedite the clean energy transition in the country.
“By further expanding our product portfolio and offering diverse options to our customers, we will continue to strengthen our market competitiveness,” said David Kim, CEO of LG Energy Solution. “We also expect to keep growing in the global market by maximizing customer value through unmatched technology leadership.”
