LG Energy Solution is planning to spend 7.2 trillion won to build a new battery plant in Arizona.
The new plant to built at Queen Creek, Arizona will manufacture cylinder, lithium iron phosphate (LFP) and energy storage system (ESS) batteries, the South Korean battery maker said following its board meeting on Friday.
The plant, once complete, will have an annual capacity of 43GWh, making it the biggest single battery production facility in North America, LG Energy Solution said.
The plan to build the plant was put on hold last year in June and was suppose to much smaller in terms of spending and production capacity.
The new plan ups spending by 4.2 trillion won and production capacity by 27GWh.
Construction will start this year and completed in 2025. LG Energy Solution said the plant will be able to help manufacture 350,000 units of high performance electric vehicles.
LG Energy Solution said the passing of the US Inflation Reduction Act has increased the demand for stable supply lines within North America.
This is why it increased its spending and production capacity goal of the new plant to meet the expected high demand, the South Korean battery maker explained.
Once the Arizona plant is completed, LG Energy Solution will have a total of seven battery production facilities in North America.