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LGES has temporarily paused construction on a portion of its battery facility in Queen Creek. Explore the details of this pause in the $5.5B project.
LG Energy Solution (LGES) has confirmed that a part of their battery project in Queen Creek, Arizona has been paused. The project, which was initially announced in 2022 was estimated to cost $5.5 billion.
The Queen Creek battery facility project included setting up two manufacturing plants marking the company’s cylindrical and ESS battery facilities in North America. The cylindrical battery plant, known as LG Energy Solution Arizona was designed to manufacture 46 Series batteries for vehicles (EVs). These batteries play a role in LG Energy Solutions product lineup and showcase the company’s advanced technology across various EV applications.
The ESS battery plant, named LG Energy Solution Arizona ESS will specialize in producing lithium iron phosphate (LFP) pouch type batteries, for energy storage systems (ESS). Also; this facility stands out as one of the first world’s battery production plants exclusively dedicated to ESS technology.
LGES is strategically locating its ESS battery plan in North America, the world’s biggest ESS market. This move by LGES to build battery facility in Queen Creek aims to meet the rising demand for made batteries driven by U.S. Clean energy policies. By doing LG Energy Solution seeks to enhance the competitiveness of its ESS batteries in terms of cost, longevity and safety.
Production capacity at LGES’s battery facility in Queen Creek
Upon operation the complex is projected to achieve an annual production capacity of 53GWh with cylindrical batteries accounting for 36GWh and LFP ESS batteries for 17GWh. Additionally; LG Energy Solutions existing facility, in Michigan established ten years ago is currently undergoing expansion to increase its production capacity fivefold.
Why is LGES Pausing Construction on battery facility in Queen Creek
LGES has affirmed that the construction of their electric vehicle battery facility in Arizona is progressing as scheduled. In response to market conditions LG Energy Solution is adjusting its investment plans efficiently. Flexibly while focusing on optimization. As a result the construction of the Arizona ESS battery facility has been temporarily halted.
The company operates five joint venture facilities, in the United States with leading automakers such as General Motors, Honda and Hyundai Motors Group. This demonstrates their commitment to supplying batteries compliant with IRA standards aiming to accelerate the adoption of energy, in the nation.
LGES’s battery facility will be situated in the part of Queen Creek, along State Route 24. This area presents opportunities for businesses seeking to establish a presence near LGES in Queen Creek taking advantage of the workforce, regional connections, population growth and other advantages. Queen Creek offers zoned, to develop sites with utilities available.
LG Energy Solution (LGES), (KRX; 373220) a spin-off of LG Chem is a producer of lithium ion batteries batteries for electric vehicles, mobility solutions IT applications and energy storage systems. With three decades of expertise in groundbreaking battery technology and extensive research and development efforts the company holds the patents related to batteries worldwide. Additionally; its strong global presence includes manufacturing facilities across North America, Europe, Asia and Australia established through partnerships with automakers like General Motors, Stellantis N.V. Hyundai Motor Group and Honda Motor Co., Ltd. Pioneering business practices and environmental responsibility LG Energy Solution aims to achieve carbon neutrality by 2050 while promoting shared growth values and fostering an inclusive corporate environment. |
