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Researched by Industrial Info Resources (Sugar Land, Texas)--LG Energy Solution (LGES) (Seoul, South Korea) announced last week it plans to invest $5.5 billion in a new battery-manufacturing complex in Queen Creek, Arizona, which includes two facilities that will produce batteries for electric vehicles (EV) and energy storage, respectively. This is the largest-ever single investment for a stand-alone battery-manufacturing facility in North America.
Both projects are expected to break ground this year.
"Our decision to invest in Arizona demonstrates our strategic initiative to continue expanding our global production network, which is already the largest in the world, to further advance our innovative and top-quality products in scale and with speed," Youngsoo Kwon, chief executive officer of LG Energy Solution, said in a press release. "We believe it's the right move at the right time in order to empower clean energy transition in the U.S."
EV Battery Manufacturing
One of the facilities is for manufacturing cylindrical batteries for EVs--with an annual capacity of 27 gigawatt-hours. As part of a $3.2 billion total investment, the $1.8 billion first phase involves constructing a 1.5 million-square-foot manufacturing facility, 328,000 square feet of warehouse/distribution space, and other buildings, with an initial capacity of 2,170 battery cells per year. LG expects mass production to begin in 2025, and a $1.6 billion expansion of the facility, should it move forward, is planned to kick off later that year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can see project reports on the grassroot and potential expansion projects.
The company said its "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."
LGES has made other moves to shore up its lithium-ion battery production, including signing a series of offtake agreements for related battery materials. In November of last year, the battery maker announced it signed a binding agreement to purchase lithium carbonate from Compass Minerals (NYSE:CMP) (Overland Park, Kansas), for a six-year term beginning in 2025. For more information on LG Energy's other agreements, see Industrial Info's September 28, 2022, article - LG Energy Signs Battery Material-Supply Agreements.
Industrial Info is tracking about $13 billion worth of projects involving LGES, including $10.9 billion in the U.S. Subscribers can click here for a full list of projects.
Batteries for Energy-Storage Systems (ESS)
The other new project at the new Queens Creek complex is a $2.3 billion grassroot manufacturing plant to produce lithium iron phosphate (LFP) batteries, which contain no cobalt or nickel. The plant would feature a capacity of 16 gigawatt-hours per year. Production is targeted to begin in 2026. Subscribers can click here for a project report.
According to a February 2022 report from the U.S. Department of Energy on grid energy-storage, amid concerns regarding availability and processing of cobalt and nickel, "LFP is an excellent option for grid ESS, and its share of the grid ESS market is expected to increase significantly."
Last month, LGES announced it signed a memorandum of understanding (MOU) with three subsidiaries of Hanwha Group (Seoul), which includes an agreement for joint investment in ESS-battery production lines in the U.S.
Among the energy-storage projects being tracking by Industrial Info that utilize LG's lithium-ion battery energy storage system (BESS) technology is Avangrid Incorporated's (NYSE:AGR) (Orange, Connecticut) $185 million BESS addition at its Bakeoven Solar Plant in Maupin, Oregon, which is expected to wrap up construction in September. Subscribers to the GMI Power Project Database can click here for the project report.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Both projects are expected to break ground this year.
"Our decision to invest in Arizona demonstrates our strategic initiative to continue expanding our global production network, which is already the largest in the world, to further advance our innovative and top-quality products in scale and with speed," Youngsoo Kwon, chief executive officer of LG Energy Solution, said in a press release. "We believe it's the right move at the right time in order to empower clean energy transition in the U.S."
EV Battery Manufacturing
One of the facilities is for manufacturing cylindrical batteries for EVs--with an annual capacity of 27 gigawatt-hours. As part of a $3.2 billion total investment, the $1.8 billion first phase involves constructing a 1.5 million-square-foot manufacturing facility, 328,000 square feet of warehouse/distribution space, and other buildings, with an initial capacity of 2,170 battery cells per year. LG expects mass production to begin in 2025, and a $1.6 billion expansion of the facility, should it move forward, is planned to kick off later that year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can see project reports on the grassroot and potential expansion projects.
The company said its "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."
LGES has made other moves to shore up its lithium-ion battery production, including signing a series of offtake agreements for related battery materials. In November of last year, the battery maker announced it signed a binding agreement to purchase lithium carbonate from Compass Minerals (NYSE:CMP) (Overland Park, Kansas), for a six-year term beginning in 2025. For more information on LG Energy's other agreements, see Industrial Info's September 28, 2022, article - LG Energy Signs Battery Material-Supply Agreements.
Industrial Info is tracking about $13 billion worth of projects involving LGES, including $10.9 billion in the U.S. Subscribers can click here for a full list of projects.
Batteries for Energy-Storage Systems (ESS)
The other new project at the new Queens Creek complex is a $2.3 billion grassroot manufacturing plant to produce lithium iron phosphate (LFP) batteries, which contain no cobalt or nickel. The plant would feature a capacity of 16 gigawatt-hours per year. Production is targeted to begin in 2026. Subscribers can click here for a project report.
According to a February 2022 report from the U.S. Department of Energy on grid energy-storage, amid concerns regarding availability and processing of cobalt and nickel, "LFP is an excellent option for grid ESS, and its share of the grid ESS market is expected to increase significantly."
Last month, LGES announced it signed a memorandum of understanding (MOU) with three subsidiaries of Hanwha Group (Seoul), which includes an agreement for joint investment in ESS-battery production lines in the U.S.
Among the energy-storage projects being tracking by Industrial Info that utilize LG's lithium-ion battery energy storage system (BESS) technology is Avangrid Incorporated's (NYSE:AGR) (Orange, Connecticut) $185 million BESS addition at its Bakeoven Solar Plant in Maupin, Oregon, which is expected to wrap up construction in September. Subscribers to the GMI Power Project Database can click here for the project report.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
