LG Energy Solution Initiates $5.5 Billion Battery Plant in Arizona for Tesla
LG Energy Solution marked the beginning of construction for its $5.5 billion battery manufacturing facility in Queen Creek, Arizona. Poised to be the largest single battery factory in North America, this plant will focus on producing cylindrical batteries for Tesla, potentially including those for the upcoming Cybertrucks.
The facility boasts a substantial production capacity of 53 gigawatt-hours, with 36 gigawatt-hours dedicated to manufacturing 4680 battery cells. These cells, named for their dimensions, offer a significant improvement in energy density over current models, aiming to slash costs by up to 50%.
A considerable portion of the factory's output is destined for Tesla, potentially to power its latest Cybertruck models. Additionally, the plant will allocate 17 gigawatt-hours of its capacity towards creating lithium iron phosphate batteries (LFP) for energy storage systems (ESS). These systems play a vital role in enhancing grid stability and efficiency for renewable energy installations by storing surplus power and distributing it according to demand.
The decision to proceed with the Arizona facility's construction follows LG Energy Solution's recent considerations regarding the project amidst challenges such as inflation-induced cost increases.
Set to commence production in 2026, the Arizona plant will also be the first in the United States to manufacture cylindrical batteries. Brian Oh, Head of Mobility & IT Battery Division at LG Energy Solution, expressed enthusiasm about the project, highlighting its significance in bolstering the green economy through the creation of thousands of new jobs.
This new venture adds to LG Energy Solution's existing footprint in the U.S., where it operates a stand-alone facility in Michigan—under expansion to significantly increase its production capacity—and five joint venture plants with leading automakers including General Motors, Honda, and Hyundai Motor Group.
