LG’s billion-dollar US battery factory pauses construction, again

Render of LG’s EV- and ESS-battery manufacturing facilities planned for Arizona, US. (Image: LG)

The site was to have two factories: one producing batteries for electric vehicles (EV) and a second for energy storage systems (ESS).

LG Energy Solution said it was temporarily pausing the ESS build, while EV-battery factory construction project is still progressing.

According to statements provided to the local news outlet, the decision related to optimising investment according to market conditions.

There is also speculation that, due to US tariffs on Chinese-made batteries, more US-based companies are requesting LG supplies batteries for ESSs to them.

As recently as 4 April 2024, LG Energy Solution, said to be one of the world’s largest EV-battery producers, said construction for the multi-billion-dollar build was “well underway”. The company said it updated Arizona officials – including Arizona Governor Katie Hobbs – at a stakeholder meeting on 3 April.

The company said then the EV factory would begin production in 2025 and ESS facility the following year.

It’s the second time the scheme has endured a pause; almost exactly two years ago to the day, the Queen Creek Tribune, a local newspaper, said the project’s initial civil construction was put on hold.