LG Energy Solution has agreed to build two battery factories in the Town of Queen Creek, Arizona at a cost of $5.5 billion. This is the largest single investment ever for a stand-alone battery manufacturing facility in North America and will require infrastructure improvements totaling more than $80 million. Streets, water and wastewater improvements are all necessary for construction to begin on this project which is expected to break ground sometime in 2023.
The Phoenix Business Journal reports that Queen Creek expects reimbursement from a state program covering approximately 80%, or $67 million, of the anticipated costs through prime contracting tax revenue generated from construction of qualified manufacturing plants; with local construction sales tax covering the remaining 20%. LGES stated it will build both cylindrical-battery plant for electric vehicles as well as lithium-iron phosphate pouch-type batteries used for energy storage systems with production beginning on these facilities by 2026.
