1. LG Energy Solution Arizona ESS facility to produce 46-Series EV batteries and LFP batteries for ESS market.
2. Facility will be one of the first ESS-exclusive battery production facilities in the world.
3. Incentives under the Inflation Reduction Act provide significant support for domestic clean energy technology manufacturing.
LG Energy Solution is set to open a new battery manufacturing facility in Arizona that will produce 36GWh of cylindrical 46-Series batteries for electric vehicles and 17GWh of pouch-type lithium iron phosphate batteries for the energy storage system market. The combined capacity of the facility will be 53GWh. This facility will be one of the first in the world dedicated exclusively to energy storage systems. Recruitment for the facility will begin in the second half of 2025.
The company believes that Arizona, with its abundant solar energy, is an ideal location to manufacture sustainable energy sources. They plan to distribute high-quality batteries made in the Copper State to every corner of America. Incentives under the Inflation Reduction Act will provide significant support for domestic clean energy technology manufacturing, including tax credits for battery cell production and investment in clean energy technologies.
In related news, Our Next Energy has signed a memorandum of understanding with a South Korean company to explore producing cathode active materials for batteries that comply with IRA incentives. This partnership aims to explore opportunities for expanding to North America and utilizing IRA-compliant materials for US-manufactured battery cells. This move could potentially qualify their batteries for the EV battery tax credit, encouraging domestic production and innovation in the battery industry.