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LG Energy Solution to Invest $5.5 Billion in Battery Manufacturing Complex on the border of San Tan Valley and Queen Creek


LG Energy Solution (LGES) has announced its plans to build a battery manufacturing complex in Queen Creek, Arizona, with a total investment of $5.5 billion. The complex will consist of two manufacturing facilities, one for cylindrical batteries for electric vehicles (EV) and another for lithium iron phosphate (LFP) pouch-type batteries for energy storage systems (ESS). This investment represents the largest single investment ever for a stand-alone battery manufacturing facility in North America.

The company plans to invest $3.2 billion to build a cylindrical battery manufacturing facility for EV with a capacity of 27 GWh. LGES also plans to invest $2.3 billion in a LFP pouch-type battery facility for ESS with a capacity of 16 GWh. Both facilities, totaling 43 GWh, are expected to break ground this year and lead to the creation of thousands of new jobs.

"This historic investment from LGES makes Arizona the battery manufacturing capital of the country. These Arizona-made batteries will power green, sustainable technologies around the world, cementing Arizona's reputation as an innovation hub for renewable energy," said Governor Katie Hobbs. "We're grateful to LGES for their legacy investment and for committing to making thousands of good-paying jobs for Arizonans."

However, the news has not been welcomed by all residents, particularly those in nearby San Tan Valley, who are concerned about the potential impact of the manufacturing complex on their community. "Queen Creek didn't want this complex in their town, so they annexed this land and now we're stuck with living literally across the street from it," shared one San Tan Valley resident. Another resident is disgusted with the decision.  "We've lived out here for decades.  We have livestock, acreage and we've loved our rural lifestyle.  Now we have a multi-billion dollar battery plant across the street." shared another resident. "Queen Creek doesn't care.  I can't vote them in or out because I don't live in Queen Creek, so they don't care what any of us think about their decision to ruin our lifestyle."

"We are so excited that LGES is expanding this pivotal project that supports the demand for innovative clean energy solutions," said Queen Creek Mayor Julia Wheatley. "The substantial investment will create a positive ripple effect for the region and the state, bringing local jobs, infrastructure, and capital investment. LG Energy Solution will be the first company to break ground along the advanced manufacturing corridor - we value their partnership and appreciate the coordination from the county and state."

"One of our primary objectives as a Board of Supervisors is to bring investment and employment opportunities to Pinal County, so that our residents do not have to leave the County to find high-paying jobs," said Mike Goodman, Pinal County Supervisor for District 2. "I am so pleased that we are accomplishing that with LGES. This type of development also brings additional resources to improve roadways and infrastructure for our community."

LGES plans to utilize a state-of-the-art smart factory system that carries out all decision-making on machine-produced data. The Arizona facilities will aim to increase yield, improve manufacturing processes, and boost productivity to better respond to the ever-rising battery demands in the region.

LGES' expansion adds to a recent string of battery announcements in Arizona. In February, Ecobat announced plans to build a lithium-ion battery recycling facility in Casa Grande. In December, American Battery Factory announced it is investing $1.2 billion to build a lithium-ion battery manufacturing facility in Tucson, creating 1,000 jobs, and Sion Power announced it is expanding its battery manufacturing operations in Tucson, creating over 150 jobs.
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Tuesday, 25 June 2024

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