LG Energy Solution (LGES) will invest $5.5 billion (KRW 7.2 trillion) to develop a new battery manufacturing complex in Queen Creek, AZ consisting of two facilities. One of these facilities will develop cylindrical EV batteries and targeting a 27 GWh capacity, while the other will build LFP pouch-type batteries for energy storage systems (ESS) and target a 16 GWh capacity.

Of the full investment, $3.2 billion (KRW 4.2 trillion) will support the construction of the cylindrical battery plant, with the remaining $2.3 billion (KRW 3 trillion) allocated to building the new LFP facility. With both plants, which are both expected to break ground in 2023, the LG Chem subsidiary is looking to boost 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.

The new facilities will utilize an advanced smart factory system that carries out all decision making based on machine-produced data. In implementing this system with the intent to enhance the quality of its products, both facilities are looking to increase yield, improve manufacturing processes, and boost productivity to meet the high EV battery demands of the North America region.

LG Energy Solution’s cylindrical battery plant is expected to commence operations in 2025 – when it will begin mass producing the company’s 2170 cells. The LFP plant will likewise aim to begin production in 2026.