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Phoenix & Southwest  + Phoenix  + Industrial  | 
$5.5B LGES battery plant to get underway later this year in Queen Creek

Phoenix-Area Town Funding Battery Makers Infrastructure Needs

LG Energy Solution has agreed to build two battery factories in the Town of Queen Creek at a cost of $5.5 billion. It’s the largest single investment ever for a stand-alone battery manufacturing facility in North America. As part of the deal, the town is building out more than $80 million worth of infrastructure for LGES’s factories. Streets, water and wastewater improvements are all needed for the company to begin construction.

The Phoenix Business Journal reports Queen Creek is expecting a state reimbursement program to cover about 80%, or $67 million, of the $84 million in anticipated costs. Through the program, cities can be reimbursed costs through prime contracting tax revenue generated from construction of a qualified manufacturing plant.

The other 20% of public infrastructure costs is expected to be covered through local construction sales tax. The project is expected to break ground sometime in 2023.

LGES said it will build a cylindrical-battery plant for electric vehicles and a lithium-iron phosphate pouch-type battery plant for energy storage systems. The lithium plant is expected to start production in 2026.


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About Mike Boyd

Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.

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