LG Energy starts construction of its second battery factory in Arizona, USA

LG Energy Solution has announced that construction on its new battery factory in Arizona, Texas, USA, has started, with 7.2 trillion won (around $5.5 billion USD) ready to go.

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This will be LG's second factory in the US, with plans to manufacture cylindrical batteries for electric vehicles (EVs) as well as lithium iron phosphate (LFP) batteries for energy storage systems (ESS). LG's second factory will be operational by 2026, with an annual capacity of 53GWh, 36GWh for cylindrical batteries, and 17GWh for ESS LFP batteries.

LG Energy Solutions is already building a battery plant in Michigan, while it has built two factories jointly-run with customer General Motors. LG also works with Honda, Hyundai Motor, and Stellantis to build joint factories.

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David Kim, CEO of LG Energy Solution, said: "By further expanding our product portfolio and offering diverse options to our customers, we will continue to strengthen our market competitiveness. We also expect to keep growing in the global market by maximizing customer value through unmatched technology leadership".

Brian Oh, Head of Mobility & IT Battery Division at LG Energy Solution, said: "Of many other sites, this Arizona facility has a special meaning to us. 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 U.S. Right here, is where we can build quality cylindrical batteries, which will be used to power millions of EVs. It gives me a great pleasure, knowing that this landmark project, here in Queen Creek will create thousands of new, quality-jobs that will contribute to building green economy".

Hyung Kim, Head of ESS Battery Division, said: "ESS plays a vital role in green energy infrastructure as it utilizes power supply in a flexible manner. 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".

Governor Katie Hobbs, said: "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. 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".