LG pumps S$7.38 billion into new battery manufacturing complex in Arizona, USA

LG Energy Solution branch in Michigan, USA.

LG Energy Solution announced an investment of KRW 7.2 trillion (approximately S$7.38 billion), in its effort to build a battery manufacturing plant in Queen Creek, Arizona, USA. The manufacturing complex will have two facilities: one for cylindrical batteries for electric vehicles (EV), and another for lithium iron phosphate pouch-type batteries for energy storage systems (ESS).

According to LG, this marks the biggest-ever single investment for a standalone battery manufacturing complex in North America, approximately four times more than the previous EV battery manufacturing plant slated for the same location in Arizona.

Of the KRW 7.2 trillion, 4.2 trillion will go into EV manufacturing with 24GWh capacity, while the remaining 3 trillion is for its ESS arm (16GWh). Both facilities would grant a total of 43GWh and has plans to break ground “this year”.

This facility is targeted at mass-manufacturing 2170 cells in 2025, to meet the rising demand of American EV makers needing locally manufactured, yet high-quality battery components.

The ESS arm, on the other hand, will see production in 2026.

Source: LG Energy Solutions