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Manufacturing

LGES $5.5B manufacturing complex in Queen Creek underway

Complex on track to be completed in 2026, creating thousands of new jobs

Posted 4/3/24

The construction of a major battery manufacturing complex in Queen Creek announced by South Korean-company LG Energy Solution last year is on track to be completed in two years with the first round …

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Manufacturing

LGES $5.5B manufacturing complex in Queen Creek underway

Complex on track to be completed in 2026, creating thousands of new jobs

Posted

The construction of a major battery manufacturing complex in Queen Creek announced by South Korean-company LG Energy Solution last year is on track to be completed in two years with the first round of hiring expected to begin at the end of this year, leaders stated on Wednesday.

The company provided progress updates on its $5.5 billion stand-alone facility during a stakeholder meeting Wednesday at Combs High School in San Tan Valley near the complex’s location at Ironwood and Pecos roads, according to a press release from Queen Creek.

LGES will be located along the State Route 24 corridor in Queen Creek’s northern tier. The area offers ample opportunities for businesses looking to locate near LGES in Queen Creek, capitalizing on the workforce, regional connectivity, population growth, and other assets.

Queen Creek has a variety of zoned, shovel-ready, and utility-served sites available to develop. An additional 392,000 square feet of light industrial speculative product is currently under construction, slated to be complete this summer and located approximately one mile from the LGES complex, the release stated.

Attendees at the LGES stakeholders meeting included company leaders, Arizona Gov. Katie Hobbs and other local dignitaries.

During the event, Hobbs announced the creation of the new battery focused Future48 Workforce Accelerator which will be located in Apache Junction in partnership with Pinal County, the Arizona Commerce Authority, Central Arizona College and McCarthy Construction.

“This transformative investment will have a lasting impact not only in Arizona, but across the country and moves us one step closer toward our clean energy goals,” Hobbs stated. “These are the jobs of the future – and the state of Arizona is committed to being an active partner in ensuring Arizonans have the skills to fill these jobs.”

Queen Creek Mayor Julia Wheatley stated that this “monumental project”  will create a “positive ripple effect for the region and the state, bringing local jobs, infrastructure, and capital investment. LGES is paving the way for our advanced manufacturing corridor – we  are so excited to welcome them to the community. We value their partnership and appreciate the coordination from the county and state.”

Mike Goodman, chairman of the Pinal County Board of Supervisors, stated that having a large employer such as LGES in the region will be particularly important to his county where “we see around 80% of our residents drive into other counties every day for work.”

“We also recognize the need to create training opportunities to support these innovative new roles, so we are excited to be partnering with Central Arizona College on the creation of the Future48 Workforce Accelerator at the Superstition Mountain Campus in Apache Junction,” Goodman stated. “This high-tech training center will allow our workforce to learn the cutting-edge science needed.”

The Queen Creek LGES complex consists of two manufacturing facilities that 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.

“As the company plans the first mass production of 46-Series batteries at its Ochang plant in South Korea in the second half of this year, which is the earliest among major global battery manufacturers, LG Energy Solution Arizona is expected to continue the momentum and reinforce the manufacturing capability,” the press release stated.

The ESS battery manufacturing facility, called LG Energy Solution Arizona ESS, will produce lithium iron phosphate pouch-type batteries for energy storage systems. It is considered to be one of the first ESS-exclusive battery production facilities in the world.

By staking its stand-alone ESS battery facility in North America, LG Energy Solution stated in the press release that it aims for a timely response to the fast-growing need for locally manufactured batteries based on U.S. clean energy policies.

When fully operational, the complex’s average annual production capacity is expected to reach a combined 53-gigawatt hours.

During the construction progress updates and site tour on Wednesday, Richard Ra, president of LG Energy Solution Arizona, stated that the project has been well underway since the groundbreaking in November, with initial land preparations completed and steel beams now being placed at the site.

With the construction going as planned, the manufacturing facility for cylindrical EV batteries is expected to be completed in late 2025, and the facility for LFP pouch-type ESS batteries in the following year.

Once the construction is complete, both facilities are expected to start production in 2026. To secure a quality workforce that will operate the manufacturing complex, the company will also commit to hiring and fostering the next-generation battery professionals in the area, creating several thousand new jobs.

“We expect the recruitment of our [launch team] members to begin late this year, and a full-scale recruitment to follow from the second half of 2025,” Ra stated.

Brian Oh, head of Mobility & IT Battery Division at LG Energy Solution, stated that the Queen Creek complex ”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.,” Oh stated. "Right here, is where we can build quality cylindrical batteries, which will be used to power millions of EVs. 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.”

Hyung Kim, head of ESS Battery Division, stated that 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.”

Sandra Watson, president and CEO of the Arizona Commerce Authority, stated that she and other stakeholders are grateful to Ra and the rest of the LG Energy Solution team for its continued commitment to Arizona, including the establishment of the Future48 Workforce Accelerator.

“LG Energy Solution’s new facility, which represents one of the most significant green energy projects anywhere in the country, will anchor Arizona’s growing battery manufacturing industry while creating thousands of new jobs,” Watson stated.

LG Energy Solution has another stand-alone facility in Michigan, which was built a decade ago and is currently undergoing expansion that would quintuple its average annual production capacity. The company also has five other joint venture facilities in the U.S. with major automakers including General Motors, Honda and Hyundai Motors Group.

For more information, review the interactive mapping tool of LGES in Queen Creek, visit

https://investtheqc.com/industrial/.