LG Energy to Invest KRW 1.7 Trillion in Its First Cylindrical Battery Plant in Arizona

LG Energy Solution announced that the company is investing KRW 1.7 trillion for the construction of a new cylindrical battery factory in Queen Creek, Arizona.

The newly announced plant will be the first ever cylindrical-type battery manufacturing plant in North America, solely invested by the Korean battery manufacturer.

The construction of this 11GWh capacity site is set to begin in the second quarter of this year, with plans for mass production slated in the second half of 2024.

Batteries produced from Arizona plant will be supplied to EV manufacturers including prominent startups and electric tool companies based in North America.

LGES's investment decision comes on the back of growing demand of cylindrical-type batteries in the North American market.

New EV startups using cylindrical batteries are on the rise in the region, while demand for applications that use cylindrical-type batteries, such as electric tools, increases in line with the wireless trend.

"With the establishment of our new Arizona plant, LG Energy Solution aims to deliver unparalleled consumer value in the rapidly growing cylindrical battery market," said Youngsoo Kwon, CEO of LG Energy Solution. "LGES will provide the most dependable, competitive and advanced products to rise as the best business partner that our clients value and trust."

The cutting-edge Arizona plant aims to establish LGES's presence in North America cylindrical battery market while actively considering additional production in the future.