LG Energy Solution, a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT, and energy storage systems, will establish a battery manufacturing complex in Queen Creek, Arizona. The $5.6 billion project is expected to create thousands of jobs.

The investment 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). The new cylindrical battery manufacturing facility is scheduled to start mass production of 2170 cells in 2025, mainly for EV makers in North America.

“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. “We believe it’s the right move at the right time in order to empower clean energy transition in the U.S.”

The $5.5 billion is nearly four times the initially-announced investment of $1.4 billion.

“We couldn’t be more excited that LGES has chosen to expand their initial investment four-fold with plans to construct another high-tech manufacturing facility,” noted Sandra Watson, President and CEO, Arizona Commerce Authority (ACA). “We are immensely grateful to CEO Youngsoo Kwon and the entire team at LG Energy Solution for their continued commitment to Arizona. My thanks also to all our partners who played a special role in this project, especially Governor Hobbs, Pinal County, Town of Queen Creek, Senator Kelly, Arizona Chamber of Commerce and Industry, GPEC and SRP. This has been a tremendous team effort and we look forward to this transformational project breaking ground.”

As the only chemical-based battery company in the world, LG Energy Solution is leading the global lithium-ion battery market based on distinguished materials technology.