LG Energy Solution is set to commence mass production at its $5.5 billion battery manufacturing facility in Queen Creek, Arizona, during the first half of 2026. The expansion aims to meet the increasing demand from major electric vehicle (EV) manufacturers Tesla and Rivian.
Julia Wheatley, the mayor of Queen Creek, confirmed to the Korea JoongAng Daily that the construction of the battery plant is progressing as scheduled. “The construction of the battery plant is well on track, with production set to start in the spring of 2026,” Wheatley stated at the InterBattery 2025 exhibition in Seoul. She also mentioned that the previously suspended lithium iron phosphate (LFP) battery line will resume operations, although a specific restart date has not been announced. Additionally, LG Energy Solution is developing an energy storage system (ESS) battery plant in Holland, Michigan, to balance market demands.
Announced in March 2023, the Arizona facility is designed to produce 53 gigawatt-hours of batteries, sufficient to power approximately 600,000 electric vehicles annually. The plant will feature a production line for 46-series cylindrical batteries, which have a diameter of 46 millimeters and were initially utilized by Tesla. These batteries offer an annual capacity of 36 kilowatt-hours for EVs and 17 kilowatt-hours for ESS applications. Cylindrical batteries are favored by global automakers due to their cost-effectiveness and superior temperature management, which enhances safety by reducing fire risks.
LG’s latest 46-millimeter cylindrical batteries boast five times the energy capacity and six times the density of their predecessors, enabling a 16 percent increase in driving range. The company is currently supplying “4680 batteries” to Tesla and has secured a supply agreement with Rivian for up to 67 gigawatt-hours over the next five years, valued at approximately $5.5 billion. Furthermore, LG Energy Solution has entered a 10-year battery supply agreement with Mercedes-Benz, effective January 1, 2028.
A spokesperson for LG Energy Solution indicated that batteries for most U.S. market clients’ vehicles will be manufactured in the Arizona plant. However, the LFP battery line’s construction was halted in June of the previous year due to a slowdown in the EV market, necessitating adjustments in investment execution.
Addressing concerns related to potential U.S. tariffs under former President Donald Trump’s administration, Fernando Garcia, Executive Vice President of International Trade and Investment at the Arizona Commerce Authority, emphasized ongoing discussions with federal authorities. “We’re certainly keeping close [communication], and looking to continue to work very closely with the federal government, and have to see what the actual way forward is going to be or not,” Garcia stated. Jae Kim from Aprio highlighted that the administration’s tariff intentions might be a negotiation tactic to encourage the sharing of advanced technologies such as autonomous driving and solid-state batteries.
Source: Korea JoongAng Daily
