LG doubles down commitment to Queen Creek battery plant, set to invest $5.5 billion

PHOENIX (3TV/CBS 5) -- A major electronics maker is making a historic commitment to Arizona, announcing that it is double-downing on its investment into a high-tech battery manufacturing plant.

In a news release, LG Energy officials called the move the “largest single investment for a stand-alone battery manufacturing facility in North America.” Initially, only about $1.4 billion was expected to be invested into a cylindrical battery factory to power electric and clean-energy vehicles, slated to be built near Ironwood and Germann Road. Now, LG says that another portion of the plant will create lithium iron phosphate (LFP) pouch-type batteries for energy storage systems (ESS). In total, it’s an investment worth about $5.5 billion.

“With this historic investment from LGES, Arizona has become the battery manufacturing capital of the country,” said Governor Katie Hobbs. “These Arizona-made batteries will power green, sustainable technologies around the world, cementing Arizona’s reputation as an innovation hub for renewable energy. We’re grateful to LGES for their legacy investment and for committing to making thousands of good-paying jobs for Arizonans.”

Artistic renderings of Phase 1 as shared by LG.(Town of Queen Creek)

But not everyone is happy with such a major manufacturing site coming to the otherwise quiet and smaller community. Reporter Holly Bock spoke with Vicki Baack last April who gathered nearly 4,000 signatures in an online petition to stop development.

“There have been a lot of articles we have uncovered this weekend that have illustrated the danger of factories in nearby neighborhoods. They are having fires; there are explosions. These are lithium-ion batteries and are not safe to be in a community like this,” Baack said. “I want jobs here too. I want people to move to the city and town and have an amazing quality of life,” Baack said. “What we don’t want are factories that could be potentially dangerous for our families and kids and loved ones.”

The Arizona Commerce Authority notes that its part of a sleuth of battery manufacturing announcements in the Valley and across the state. Earlier this year, Ecobat announced a lithium-ion recycling plant to be built in Casa Grande. And late last year, American Battery Factory announced a $1.2 billion lithium-ion plant in Tucson.

LG expects the plant to be operational in 2025.