LG Energy Solution’s Arizona battery complex to come onstream in 2026

The USD-5.5-billion (EUR-5.1bn) battery manufacturing complex that South Korea’s LG Energy Solution Ltd (KRX:373220) is building in the US state of Arizona is set to be completed and start production in about two years.

At a stakeholder meeting last week the company said that the project is well underway. The complex will have two manufacturing facilities – a cylindrical battery plant which will produce batteries for electric vehicles (EVs), and a facility that will produce lithium iron phosphate (LFP) pouch-type batteries for energy storage systems (ESS). It is expected to reach a total average annual production capacity of 53 GWh, of which 36 GWh cylindrical batteries and 17 GWh LFP ESS batteries.

With respect to the ESS plant, the company said that “[b]y situating its stand-alone ESS battery facility in North America, the world’s biggest ESS market, LG Energy Solution aims for a timely response to the fast-growing needs for locally manufactured batteries on the back of the US clean energy policies [...].”

LG Energy Solution announced the project last year and ground was broken in November 2023.

The manufacturing facility for EV batteries is due to be completed in late 2025 and the ESS battery facility in the following year. Both are anticipated to start production in 2026.

“We expect the recruitment of our [launch team] members to begin late this year, and a full-scale recruitment to follow from the second half of 2025,” said Richard Ra, president of LG Energy Solution Arizona.

In the US, LG Energy Solution has another stand-alone facility in Michigan, which is currently being expanded, and five other joint venture facilities with major carmakers.

(USD 1 = EUR 0.922)

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