LG Energy's construction of Arizona gigafactory for EV, ESS batteries right on track

Battery manufacturer LG Energy has announced the construction work of its Arizona gigafactory complex is right on track to be completed in two years by 2026. The complex includes a dedicated manufacturing facility for ESS battery packs, which it claims as one of the largest of its kind globally. 

The complex consists of two battery manufacturing facilities, which are the company's first stand-alone cylindrical and ESS battery plants in North America. The cylindrical battery plant, called LG Energy Solution Arizona, will produce 46-Series batteries for electric vehicles at a production capacity of 36 GWh. 

"By further expanding our product portfolio and offering diverse options to our customers, we will continue to strengthen our market competitiveness," said David Kim, CEO of LG Energy Solution. "We also expect to keep growing in the global market by maximizing customer value through unmatched technology leadership."

The ESS battery manufacturing facility, called LG Energy Solution Arizona ESS, will produce 17 GWh of lithium iron phosphate (LFP) pouch-type batteries for energy storage systems (ESS). It is one of the first ESS-exclusive battery production facilities in the world, according to LG Energy. When fully operational, the complex's average annual production capacity is expected to reach 53 GWh. 

The 46-Series cylindrical batteries aim to demonstrate LG Energy Solution's advanced technological leadership throughout various applications for EVs. As the company targets mass production of 46-Series batteries at its Ochang plant in Korea in the second half of this year, which is claimed as the earliest among major global battery manufacturers, the Arizona facility is expected to continue the momentum and reinforce the manufacturing capability.

"Of many other sites, this Arizona facility has a special meaning to us. This is the second stand-alone facility to be built in the U.S. And it is also the first manufacturing facility to produce cylindrical batteries in the U.S. Right here, is where we can build quality cylindrical batteries, which will be used to power millions of EVs," said Brian Oh, Head of Mobility & IT Battery Division at LG Energy Solution.

"It gives me a great pleasure, knowing that this landmark project, here in Queen Creek will create thousands of new, quality-jobs that will contribute to building green economy", he added.

On the other hand, by situating its stand-alone ESS battery facility in the world's biggest ESS market (North America), LG Energy Solution aims for a timely response to the fast-growing needs for locally manufactured batteries with enhanced competitiveness in cost, battery life, and safety.

"ESS plays a vital role in green energy infrastructure as it utilizes power supply in a flexible manner," said Hyung Kim, Head of ESS Battery Division. "There is no better place to build the source of our sustainable energy here in Arizona, where the abundant solar energy surrounds the region. Quality batteries, made right here in the Copper State, will reach every corner of America to provide power."

It is to be noted that LG Energy Solution already has a stand-alone battery facility in the US at Michigan. The company also has five other joint venture facilities in the country, with major automakers, including General Motors, Honda, and Hyundai Motors Group, representing its full-fledged efforts to provide IRA-compliant batteries that will expedite the clean energy transition in the country.