LG Energy Solution, a South Korean tech heavyweight in the battery manufacturing sphere, has announced a strategic halt in its expansion plan concerning the second phase of its ambitious $5.5 billion battery plant project in Arizona. This interruption will directly affect the rollout of the proposed energy storage system (ESS) battery factory, which forms the second part of the company's industrial foray in Queen Creek, according to a statement obtained by ABC15. The first phase, a cylindrical battery factory for electric vehicles, is continuing as planned with nearby residents optimistic about the expected economic boost.
The cylindrical battery facility's vertical construction phase kicked off earlier this year with the assurance that this portion of LGES's grand plan will proceed unperturbed by the current delay. Once operational, this plant is set to take the title of Queen Creek's most substantial single employer, offering close to 4,000 local jobs, as reported by KTAR. The anticipated start of production activities is slated for 2026 and the logistics of the in-progress battery facility are being steered by Yates Construction, with its design crafted by Ware Malcomb.
In a move reflective of the unpredictable nature of the market, LGES cited adjusting the pace of its investment as a primary motivator for this development hold. The company elaborates on its intent to "focus on optimizing our operations" to match the current market conditions.
This decision to hit 'pause' sends a clear signal that LGES is taking a cautious approach to its global expansion strategy, hinting at undisclosed economic factors that could shape the future of battery manufacturing competitiveness in the US. The ongoing construction of the first plant, managed by a general contractor, and designed to precision, remains undisturbed by these recent developments in corporate strategy. "The production is expected to start in 2026 on the LGES battery plant that’s currently under construction by general contractor Yates Construction and designed by Ware Malcomb," LGES guaranteed according to both ABC15 and KTAR.
