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LG Energy Solution investment set to energize production to serve burgeoning North American marketplace

Photo LG Energy Solution battery manufacturing in Queen Creek
A 3D rendering of what battery manufacturing may look like through LG Energy Solution’s billion-dollar investment in a manufacturing campus in Queen Creek. (File Photos/DigitalFreePress.com)
LG Energy Solution seeks to realize growth opportunity in Queen Creek
Staff Reports | Digital Free Press

A formal announcement late last week set the local and national digital business wires abuzz with news of LG Energy Solution announcing its intentions to significantly increase its investment to construct a battery manufacturing complex in the Town of Queen Creek.

LG Energy Solution has announced it will invest about $5.5 billion to construct a battery manufacturing complex in Queen Creek, the release states. The complex is expected to consist of two manufacturing facilities — one for cylindrical batteries for electric vehicles and another for lithium iron phosphate pouch-type batteries for energy storage systems, according to the release.

“Our decision to invest in Arizona demonstrates our strategic initiative to continue expanding our global production network, which is already the largest in the world, to further advance our innovative and top-quality products in scale and with speed,” said Youngsoo Kwon, CEO of LG Energy Solution, in a prepared statement. “We believe it’s the right move at the right time in order to empower clean energy transition in the U.S.”

This investment, LG Energy Solutions representatives say, is the largest single investment ever for a stand-alone battery manufacturing facility in North America. It is also more than four times the amount the company initially announced last year to manufacture cylindrical EV batteries in the same location, officials close to the matter say.

With the new battery manufacturing complex in the southwestern state, LGES officials say they anticipate a significant boost to its production capacity in major product segments, develop more cohesive partnerships with its customers in both EV and ESS sectors, and cut back on the logistics cost by bringing its new manufacturing facilities in close proximity to its customers.

Of particular note is this news illustrates the following LG Energy Solutions officials say:

The largest single investment ever for stand-alone battery manufacturing facility in North America.

The new manufacturing complex to produce cylindrical batteries for EVs (27GWh) and LFP pouch-type batteries for ESS (16GWh), with total annual production capacity reaching 43GWh.

Production to start in 2025 and 2026 respectively, addressing customers’ needs for locally manufactured batteries in response to IRA tax credits and surge in market demands.

The manufacturing complex to ensure cohesive partnerships and further promote collective drive to expedite clean energy transition with major EV and ESS players in North America.

LG Energy Solution seeks to realize growth opportunity in Queen Creek

The new manufacturing facility for LFP pouch-type batteries for ESS, which is the first ESS-exclusive battery production facility in the world, aims to start production in 2026. With LG Energy Solution Vertech, Inc.’s fully integrated energy storage solutions, LGES will further expand its presence in the entire ESS value chain.

Situating the new ESS battery facility in North America, the biggest ESS market globally, LGES, which is based in South Korea aims to respond to the fast-growing needs for locally manufactured batteries on the back of the IRA, and further expedite clean energy transition in North America upon the strong government policies supporting the adoption of ESS.

The company’s new manufacturing facilities will utilize a state-of-the-art smart factory system that carries out all decision making on machine-produced data. By implementing this key measure to enhance product quality, 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.

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