LG Energy Solution to invest KRW 7.2 trillion for a gigafactory in Arizona for EV and ESS batteries

24 March 2023, 06:16:23

LG Energy Solution to invest KRW 7.2 trillion for a gigafactory in Arizona for EV and ESS batteriesLG Energy Solution today announced it will invest approximately KRW 7.2 trillion (USD 5.5 billion) to construct a battery manufacturing complex in Queen Creek, Arizona. The complex 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).

It marks 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 (KRW 1.7 trillion) to manufacture cylindrical EV batteries in the same location.

Out of the KRW 7.2 trillion, the company plans to invest KRW 4.2 trillion (USD 3.2 billion) in building cylindrical battery manufacturing facility with a capacity of 27GWh, and KRW 3 trillion (USD 2.3 billion) in LFP pouch-type battery facility with the capacity of 16GWh. Both facilities, totaling 43GWh, plan to break ground this year.

With the new battery manufacturing complex in the southwestern state, LGES will 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 cylindrical battery manufacturing facility aims to start mass production of 2170 cells in 2025, mainly for EV makers in North America. It is the first-ever U.S. cylindrical battery manufacturing facility solely invested by a Korean battery manufacturer. The company's decision to increase investment in cylindrical EV battery production in North America comes from rising demand from EV makers for locally manufactured high-quality, high-performance batteries in an effort to satisfy the Inflation Reduction Act (IRA)'s EV tax credits.

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 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.

Related news

News related to LG, LG Energy Solution or LGES

LG Energy Solution will invest in a U.S. lithium battery technology startup

LG Energy Solution announced its equity investment in Sion Power, a startup company based in Arizona, U.S. which holds core patents in the field of lithium metal battery technology. A lithium metal battery uses a lithium metal anode instead of a graphite or silicon anode to achieve higher energy efficiency compared to existing lithium-ion batteries. However, progress in its development has been slow due to new...

25 January 2024

LG Display showcased the world's largest automotive display at CES 2024

LG Display showcases a series of ultra-large automotive display solutions at CES 2024. At its dedicated booth for automotive displays in the West Hall of LVCC, the company unveiled the world's largest automotive display - the 57-inch Pillar-to-Pillar (P2P) LCD - and the largest slidable panel - the 32-inch Slidable OLED. The 57-inch Pillar-to-Pillar (P2P) LCD covers the entire dashboard from the driver's seat to the...

10 January 2024

LG and Magna accelerate next-gen autonomous driving and infotainment solutions

LG will hold a private demonstration for major automakers at CES 2024, introducing a new cross domain platform integrating Advanced Driver Assistance System (ADAS), Automated Driving (AD) and In-Vehicle Infotainment (IVI) technologies. Developed by LG in collaboration with Magna, a global mobility tech company, the game-changing future mobility platform is expected to arrive on the market in the near future...

4 January 2024

LG Chem breaks ground of its Tennessee plant, taking the lead as a top cathode supplier in the U.S.

LG Chem has commenced the construction of a cathode plant in the U.S., intending to establish a production hub for the global battery material market. The facility, located in Montgomery County, Clarksville, Tennessee, will locally produce cathode materials optimized for North American electric vehicles (EVs) and collaborate with key partners from development to the supply chain. LG Chem will invest around KRW 2...

28 December 2023

LG Electronics to enter the U.S. EV charging market with a line of owner-operated AC and DC chargers

LG Electronics will enter the rapidly growing U.S. electric vehicle charger market in 2024 with the introduction of its first line of AC and DC powered EV charging stations. According to LG Business Solutions USA's Senior Vice President Nicolas Min, the line will include Level 2 and Level 3 EV chargers, opening new opportunities for businesses, municipalities and other public places to support the electrification of...

17 November 2023

Koç Holding withdraws from the non-binding MoU with LGES and Ford for an EV battery JV in Türkiye

Korean news agency Yonhap reports that LG Energy Solution, Ford, and Koç Holding scrap plans to build an EV battery JV in Türkiye. Earlier this year, on February 22, the three companies signed a non-binding Memorandum of Understanding (MoU) to form a new joint venture to create one of Europe's largest commercial electric vehicle battery cell facilities near Ankara, Türkiye. The agreement was subject to final...

13 November 2023

LG Energy Solution and Toyota Motor North America sign an EV battery deal

LG Energy Solution and Toyota Motor North America today announced that they have signed a supply agreement for lithium-ion battery modules to be used in Toyota battery electric vehicles (BEVs) that will be assembled in the United States. Under the contract, LG Energy Solution will supply automotive battery modules at an annual capacity of 20GWh starting from 2025. The battery modules, consisting of high-nickel NCMA...

4 October 2023

LG Magna e-Powertrain expands footprint with new facility in Hungary

LG Magna e-Powertrain, the JV between LG Electronics and Magna formed in 2021, announced at IAA Mobility 2023 that it is expanding its footprint with a new facility in Miskolc, Hungary. The facility will be in Miskolc’s industrial area which features well-developed infrastructure and is strategically located near OEM customers and other Magna facilities throughout the region. The company has also received strong...

4 September 2023

Hyundai Motor Group and LG Energy Solution to invest additional $2B in Bryan County

Governor Brian P. Kemp today announced that Hyundai Motor Group and LG Energy Solution (LGES) will invest an additional $2 billion in their battery cell manufacturing joint venture (JV) at the Metaplant in Bryan County, raising the JV’s total investment value to more than $4.3 billion. This expansion will create another 400 new jobs. In May 2023, Hyundai Motor Group and LGES signed a memorandum of understanding...

1 September 2023

Samsung SDI plans on building the first LFP EV battery facility in South Korea

Business Korea reports that according to its industry and government sources, Samsung SDI and the Ulsan city officials are in talks regarding the expansion of the company's Ulsan plant with an LFP battery production line. If these talks lead to actual construction, this will be the first lithium iron phosphate (LFP) battery production facility in South Korea. This type of battery is less efficient than the NMC one...

21 August 2023

LG Energy Solution Michigan's second plant now on track

U.S. is on the cusp of an electric vehicle (EV) revolution, as EVs are expected to make up half of new car sales worldwide by 2035 (Goldman Sachs). At the forefront of this growing market, LG Energy Solution Michigan’s second battery plant is now on track, with the aim of expanding its capacity five-fold. LGES Michigan is investing USD 1.7 billion into the expansion project, adding an additional 1.7 million square...

25 July 2023

Construction of the Stellantis+LG Energy Solution Canadian gigafactory resumes

NextStar Energy, the vehicle battery joint venture between Stellantis and LG Energy Solution, signed a binding agreement that secures the future of battery cell and module production in Windsor, Ontario and honors the commitments that were made by the Canadian government to level the playing field with the U.S. Inflation Reduction Act (IRA). Effective immediately, all construction at the NextStar Energy battery...

7 July 2023

LG Chem enters production of single crystal battery cathode to increase EV battery life by 30%

LG Chem announced in South Korea that it has started mass production of high-nickel single-particle (single crystal) cathode materials for next-generation EV batteries at its Cheongju cathode material plant in June. The first batch of products will be sent to global customers in July. LG Chem plans to expand its single-particle cathode material production line to its Gumi plant by 2027 and expand its total...

29 June 2023

LGES-Honda battery plant in Ohio reaches another major construction milestone

LG Energy Solution and Honda marked another major milestone of construction for its new joint venture EV battery facility this week when the first steel beam was installed at the plant site in Jeffersonville, Ohio. The companies have committed to invest $3.5 billion, with plans to create 2,200 jobs, in the over 2 million square feet facility, with an overall investment projected to reach $4.4 billion. The new joint...

21 June 2023

EV Specifications

Complete specifications of EVs, grouped according to their brand and year

AudiBMWBytonCadillacChevroletDaciae.GOFIATFiskerFordGenesisGMCHondaHyundaiJaguarKIALexusLucidMazdaMercedes-BenzMGMININIONissanOpelPeugeotPolestarPorscheRenaultRivianSEATŠKODAsmartSubaruTeslaToyotaVolkswagenVolvoXiaomi

Featured

Specifications of some of the most interesting and anticipated EVs.

2024 Porsche Macan

2024 Porsche Macan 4

Doors: 4, Seats: 5
Length: 188.3 in / 4784 mm
Width: 76.3 in / 1938 mm
Height: 63.9 in / 1622 mm
Curb weight: 5302.12 lb / 2405 kg
Location: Rear
Location: Front
Battery: 100 kWh, Voltage: 800 V

2024 Porsche Macan

2024 Porsche Macan Turbo

Doors: 4, Seats: 5
Length: 188.3 in / 4784 mm
Width: 76.3 in / 1938 mm
Height: 63.8 in / 1621 mm
Curb weight: 5302.12 lb / 2405 kg
Location: Rear
Location: Front
Battery: 100 kWh, Voltage: 800 V

2024 Xiaomi SU7

2024 Xiaomi SU7 RWD

Doors: 4, Seats: 5
Length: 196.7 in / 4997 mm
Width: 77.3 in / 1963 mm
Height: 57.3 in / 1455 mm
Curb weight: 4365.15 lb / 1980 kg
Electric motor: 220 kW, 400 Nm, Location: Rear
Battery: 73.6 kWh

2024 Xiaomi SU7

2024 Xiaomi SU7 AWD

Doors: 4, Seats: 5
Length: 196.7 in / 4997 mm
Width: 77.3 in / 1963 mm
Height: 56.7 in / 1440 mm
Curb weight: 4861.19 lb / 2205 kg
Electric motor #1: 275 kW, 500 Nm, Location: Rear
Electric motor #2: 220 kW, 400 Nm, Location: Front
Battery: 101 kWh, Voltage: 871 V

2024 Volkswagen ID.7

2024 Volkswagen ID.7 Pro

Doors: 4, Seats: 5
Length: 195.3 in / 4961 mm
Height: 60.5 in / 1536 mm
Curb weight: 4788.44 lb / 2172 kg
Electric motor: 210 kW, 550 Nm, Location: Rear
Battery: 77 kWh

2025 Cadillac Escalade IQ

2025 Cadillac Escalade IQ Luxury 2

Doors: 5, Seats: 7
Length: 224.3 in / 5697 mm
Height: 76.1 in / 1934 mm
Electric motor: 505 kW, 1064 Nm, Location: Rear
Location: Front
Battery: 200 kWh, Voltage: 800 V

2025 Cadillac Escalade IQ

2025 Cadillac Escalade IQ Sport 2

Doors: 5, Seats: 7
Length: 224.3 in / 5697 mm
Height: 76.1 in / 1934 mm
Electric motor: 505 kW, 1064 Nm, Location: Rear
Location: Front
Battery: 200 kWh, Voltage: 800 V

2025 Cadillac Escalade IQ

2025 Cadillac Escalade IQ Luxury 1

Doors: 5, Seats: 7
Length: 224.3 in / 5697 mm
Height: 76.1 in / 1934 mm
Electric motor: 505 kW, 1064 Nm, Location: Rear
Location: Front
Battery: 200 kWh, Voltage: 800 V

2025 Cadillac Escalade IQ

2025 Cadillac Escalade IQ Sport 1

Doors: 5, Seats: 7
Length: 224.3 in / 5697 mm
Height: 76.1 in / 1934 mm
Electric motor: 505 kW, 1064 Nm, Location: Rear
Location: Front
Battery: 200 kWh, Voltage: 800 V

2025 Volvo EX30

2025 Volvo EX30 Twin Motor Performance (EK)

Doors: 5, Seats: 5
Length: 166.7 in / 4233 mm
Width: 76.4 in / 1940 mm
Height: 61.0 in / 1549 mm
Curb weight: 4034.46 lb / 1830 kg
Location: Rear
Location: Front
Battery: 69 kWh

2023 BMW i7

2023 BMW i7 xDrive60

Doors: 4, Seats: 5
Length: 212.2 in / 5391 mm
Width: 76.8 in / 1950 mm
Height: 60.8 in / 1544 mm
Curb weight: 5820.2 lb / 2640 kg
Electric motor #1: 190 kW, 365 Nm, Location: Rear
Electric motor #2: 230 kW, 380 Nm, Location: Front
Battery: 105.7 kWh, Voltage: 376.4 V

2024 BMW iX

2024 BMW iX M60

Doors: 5, Seats: 5
Length: 195.0 in / 4953 mm
Width: 77.4 in / 1967 mm
Height: 66.8 in / 1696 mm
Curb weight: 5862.09 lb / 2659 kg
Location: Rear
Location: Front
Battery: 111.5 kWh, Voltage: 330.3 V

2024 BMW iX

2024 BMW iX xDrive50

Doors: 5, Seats: 5
Length: 195.0 in / 4953 mm
Width: 77.4 in / 1967 mm
Height: 66.8 in / 1696 mm
Curb weight: 5698.95 lb / 2585 kg
Location: Rear
Location: Front
Battery: 111.5 kWh, Voltage: 330.3 V

2024 BMW i4

2024 BMW i4 xDrive40

Doors: 4, Seats: 5
Length: 188.3 in / 4783 mm
Width: 72.9 in / 1852 mm
Height: 57.0 in / 1448 mm
Curb weight: 5048.59 lb / 2290 kg
Location: Rear
Location: Front
Battery: 83.9 kWh, Voltage: 398.5 V

2023 BMW i4

2023 BMW i4 M50

Doors: 4, Seats: 5
Length: 188.3 in / 4783 mm
Width: 72.9 in / 1852 mm
Height: 57.0 in / 1448 mm
Curb weight: 5048.59 lb / 2290 kg
Electric motor #1: 230 kW @ 8000 - 17000 rpm, 365 Nm, Location: Rear
Electric motor #2: 190 kW @ 8000 - 17000 rpm, 430 Nm, Location: Front
Battery: 83.9 kWh, Voltage: 398.5 V

2023 BMW iX

2023 BMW iX M60

Doors: 5, Seats: 5
Length: 195.0 in / 4953 mm
Width: 77.4 in / 1967 mm
Height: 66.8 in / 1696 mm
Curb weight: 5862.09 lb / 2659 kg
Location: Rear
Location: Front
Battery: 111.5 kWh, Voltage: 330.3 V

2023 BMW iX

2023 BMW iX xDrive50

Doors: 5, Seats: 5
Length: 195.0 in / 4953 mm
Width: 77.4 in / 1967 mm
Height: 66.8 in / 1696 mm
Curb weight: 5698.95 lb / 2585 kg
Location: Rear
Location: Front
Battery: 111.5 kWh, Voltage: 330.3 V

2024 Volvo EX90

2024 Volvo EX90 Twin Performance (E2)

Doors: 5, Seats: 7
Length: 198.3 in / 5037 mm
Width: 77.3 in / 1964 mm
Height: 68.7 in / 1744 mm
Curb weight: 6197.19 lb / 2811 kg
Electric motor #1: 190 kW, 490 Nm, Location: Rear
Electric motor #2: 180 kW, 420 Nm, Location: Front
Battery: 111 kWh, Voltage: 400 V