LG Energy Solution has started construction on its second stand-alone battery manufacturing complex in the United States, located in Arizona, with a groundbreaking ceremony and stakeholder meeting on Wednesday.

Announced last year, the $5.5 billion project will stand out as the first of its kind in North America, dedicated entirely to the production of cylindrical batteries for EVs and lithium iron phosphate pouch-type batteries for energy system solution applications. The company aims to complete construction and enter production by 2026.

LG Energy Solution also held a stakeholder meeting providing updates on the facility's construction at Combs High School in San Tan Valley, close to the construction site in Queen Creek. Present at both the ceremony and the meeting were LG Energy Solution executives, Arizona Gov. Katie Hobbs, and Sandra Watson, president and CEO of the Arizona Commerce Authority, among other key officials.

Construction is underway following the completion of land preparations and the erection of structural steel. Once operational, the Arizona complex is projected to have an annual production capacity of 53 gigawatt-hours, which is split between 36GWh for cylindrical EV batteries and 17GWh for lithium iron phosphate ESS batteries.

The complex's cylindrical battery facility is set to produce 46-series batteries, which are crucial for powering a wide range of electric vehicles. LG will initiate mass production of these batteries at its Ochang plant in Korea later this year, ahead of global competitors.

The ESS facility will focus on crafting LFP pouch-type batteries, a technology favored for its safety and longevity, making it ideal for storing renewable energy. By establishing one of the world's first ESS-exclusive production facilities in North America, LG taps into the rapidly expanding market for energy storage, driven by increasing investments in clean energy solutions and supportive US policies.

“We’re gearing up to start hiring late this year, aiming for a full team by late 2025. We’re building a crew to lead the next wave in battery tech,” said Richard Ra, president of LG Energy Solution Arizona.

This plant is expected to create several thousand new jobs in the region.

“These are the jobs of the future -- and the State of Arizona is committed to being an active partner in ensuring Arizonans have the skills to fill these jobs,” said Hobbs.

Oh Yoo-sung, head of the mobility & IT battery division at LG Energy Solution, said, “This Arizona facility is a game-changer for us. It’s our second stand-alone in the US and a pioneer in US cylindrical battery production. Here’s where we’ll power the future of EVs.”

LG Energy Solution's expansion into Arizona complements its US presence, which already includes a decade-old facility in Michigan and five collaborative ventures with automotive giants including General Motors, Honda and the Hyundai Motor Group.

“By further expanding our product portfolio and offering diverse options to our customers, we will continue to strengthen our market competitiveness,” said LG Energy Solution CEO Kim Dong-myung.