This week, the Arizona Commerce Authority (ACA) announced that LG Energy Solutions will be investing $1.4 billion to build a cylindrical-type battery facility in Queen Creek, Arizona. This facility will be the first of its kind for LGES in North America. Construction on the facility is slated to begin this summer and production will commence in 2024. The facility is expected to bring thousands of highly-skilled high-paying jobs to the area and the state as a whole.
Cylindrical batteries offer high-density, compact energy storage ideal for applications like electric vehicles. According to the announcement by the ACA, the state-of-the-art Arizona facility aims to establish LGES’s presence in North America’s cylindrical battery market while also providing opportunity for further expansion. LGES’ Queen Creek facility will feature a cutting-edge smart factory system including remote support, manufacturing intelligence, logistics automation and more.
Of the announcement, Governor Ducey said, “Global technology leaders like LG are choosing Arizona because of our world-class business environment, advanced workforce, unbeatable quality of life, and culture of innovation - one that’s delivering unparalleled opportunity for current and future generations.”
Arizona’s energy innovation sector, including high-tech manufacturing, semiconductors, electric vehicles, and batteries, is flourishing. The state has seen recent multi-billion-dollar investments from global technology leaders such as Intel and TSMC, EV makers such as Lucid, Nikola, and ElectraMeccanica opening or expanding production operations in the state, and other battery storage and clean tech companies joining Arizona’s ecosystem.
Sandra Watson, President and CEO of the Arizona Commerce Authority, highlighted Arizona’s acceleration in recent years toward becoming a hub of clean energy and tech innovation. “With LG Energy Solution’s announcement, Arizona has cemented our reputation as the world’s production capital for cutting-edge battery technology. This high-tech facility further anchors Arizona as a hub for electric vehicles and sustainable technologies, bolstering our already robust EV supply chain.”
Echoing her remarks, Chris Camacho, President and CEO of the Greater Phoenix Economic Council, another economic development agency, noted, "The addition of LG Energy Solution's high-tech battery manufacturing facility to Queen Creek is a massive investment that solidifies the market's position as a hub for battery technology and energy storage and is significant for Greater Phoenix as it continues to attract global leaders in emerging industries.”
All of this is good news for Arizona, and underscores the importance of ensuring the state has the right policies in place for it to continue on this positive trajectory.