LG Energy Solution Pauses Part of $5.5 Billion Battery Complex in Arizona
LG Energy Solution, a subsidiary of South Korea's LG Chem, has announced a pause in the construction of a $2.3 billion energy storage battery plant in Queen Creek, Arizona. This plant is part of a larger $5.5 billion lithium-ion battery manufacturing complex, which is touted as North America's largest standalone battery manufacturing investment.
Despite the suspension of the energy storage plant, construction continues on a separate factory dedicated to electric vehicle (EV) batteries. The EV battery plant, valued at $3.2 billion, is expected to have a production capacity of 36 GWh and remains on schedule to begin production in 2026.
Tristan Doherty, Chief Product Officer of LG Energy Solution Vertech Inc., a US affiliate of LG Energy Solution, emphasized that the suspension is only "half the story," stating that the company is accelerating its timeline and increasing supply but did not provide further details.
The town of Queen Creek confirmed ongoing infrastructure improvements related to the EV battery plant and is evaluating the timing of improvements for the energy storage facility.
Construction delays are acknowledged as not uncommon, with a previous pause at the site occurring in 2022. Both Queen Creek and Pinal County remain committed to supporting the advanced manufacturing corridor and their partnership with LG Energy Solution.
