- LG Energy Solution intends to start construction on both buildings.
- The two facilities will meet the growing demand for domestically produced EV and storage batteries.
According to a statement by LG Energy Solution Ltd. of South Korea, an industrial complex to manufacture batteries for electric cars (EVs) and energy storage systems will be built in Queen Creek, Arizona. The corporation will spend KRW 4.2 trillion on a cylindrical EV battery factory with a capacity of 27 GWh annually and KRW 3 trillion on a lithium iron phosphate (LFP) pouch-type battery plant with a total of 16 GWh for the complex, which will include two facilities.
In 2023, LG Energy Solution intends to start construction on both buildings. According to the company’s anticipated timeline, EV batteries are expected to begin leaving the production line in 2025, and storage batteries will follow in 2026.
The investment is four times what LG Energy Solution had stated it would make when a cylindrical EV battery facility was being planned for the same location last year. According to the Korean battery manufacturer, the two facilities will meet the growing demand for domestically produced EV and storage batteries in an effort to benefit from tax benefits provided by the Inflation Reduction Act (IRA).
The CEO Youngsoo Kwon stated, “Our choice to invest in Arizona illustrates our strategic initiative to continue extending our worldwide production network, which is already the largest in the world, to further advance our cutting-edge and high-quality goods in scale and with speed. We think it’s the appropriate action at the right moment to support the U.S.’s transition to renewable energy.