The industrial landscape of metro Phoenix is poised to significantly evolve as LG Energy Solution (LGES) continues the construction of its extensive battery manufacturing facility in the East Valley. The South Korean powerhouse is strategically positioning itself to meet the burgeoning demand for electric vehicle batteries, with its first factory in the area now reported at about 35% completion. According to a recent update presented during the Queen Creek Town Council meeting last Wednesday, the facility spans over 1 million square feet and is expected to be operational by the end of 2025, as conveyed by ABC15.
With a substantial investment of $5.5 billion dedicated to this Arizona project, LGES is set to rapidly commence hiring in 2025. The initiative aims to gradually kickstart an increase in local employment opportunities. The total 320-acre site owned by LGES in Queen Creek will house three main buildings for manufacturing purposes, with additional support structures to complement the vast production layout, according to details provided in a report by Phoenix Business Journal. The company recently halted plans for the second phase of development, which would have added another facility focusing on energy storage systems manufacturing, indicating a shift in immediate priorities while not abandoning long-term goals.
Concurrent with the factory's construction, the state has joined forces with LGES to establish a workforce accelerator at Central Arizona College. This will be a 20,000-square-foot training center designed to sharpen expertise in battery manufacturing. Intended to activate next year, the training center's core group of employees will initially receive instruction in South Korea, ensuring the proficient transfer of knowledge and skills to future hires in Queen Creek. During the Town Council meeting, Queen Creek's economic development director, Doreen Cott, mentioned active collaboration with Pinal County and LGES to boost job visibility amid stiff competition in the Valley from other tech giants.
In terms of infrastructure, Queen Creek is on track to complete designs that facilitate the LG project. Construction of new roads around the property will herald improved accessibility for the forthcoming operational surge. LGES is also diligently working to lock down water and wastewater agreements to satisfy the factory's needs. "These water resource transactions will assure that the project has their water supply and is not reliant on groundwater," Cott told the Phoenix Business Journal. The efforts to secure water resources include negotiations with local entities such as Salt River Project and the Gila River Indian Tribe.
While the LGES plant's first phase heralds 2,800 jobs and a $3.2 billion influx, the full capacity and benefits of LG's Arizona foothold will unfold in the coming years. Rivian Automotive, the Illinois-based automaker, is set to be one of the primary recipients of the batteries produced there, specifically for their R2 model vehicles. This partnership showcases a pivotal link between LG's Arizona operations and the broader electric vehicle industry. As 2025 approaches, the ramp-up in employment and production from LGES will represent a transformative period for the East Valley, fortifying its status in the tech and manufacturing sectors.
