By Russ Wiles | Arizona Republic
LG Energy Solution said it will quadruple its initial budget for a battery manufacturing plant in Queen Creek and now plans to spend $5.5 billion for the project, which will create thousands of jobs and could become the largest stand-alone battery complex in North America.
The South Korean company’s lithium-ion batteries power electric vehicles, mobility devices, information technology services and energy-storage services. The complex will consist of two manufacturing facilities — one for cylindrical batteries for electric vehicles and another for lithium iron phosphate batteries for energy storage systems. Production is expected to start in 2025. (Lithium ion and lithium iron phosphate are two distinct types of batteries.)
LG Energy Solution said demand for batteries is surging, and the company expects its 2023 revenue to increase by 25% to 30%. The company attributed the demand increase in part to federal tax credits in the Inflation Reduction Act, which was passed by Congress last year.
The announcement didn’t specify the number of jobs, types of positions or when hiring will start, but Arizona Gov. Katie Hobbs said the invesment will mark Arizona as the “battery manufacturing capital of the country,” cementing the state’s reputation as “an innovation hub for renewable energy.”
