April 3 – Queen Creek officials say they have learned that South Korea-based LG Energy Solutions has quadrupled its investment in a battery manufacturing facility.
LG, which said a year ago it would invest $1.4 billion in the facility, told the town on March 24 that it would increase that to $5.5 billion.
According to a written response from Queen Creek’s economic development director Doreen Cott, senior officials in Seoul, South Korea, where LG is based, did not approve the investment until shortly before notifying Queen Creek.
“The town was officially notified after the LGES board meeting on March 24 that LGES is increasing its investment by almost fourfold,” Cott said.
The announcement was made in Seoul, 16 hours ahead of Arizona. At 10:58 p.m. Arizona time on March 23, the official press received his release from Seoul.
Months of delays, research, evaluation, and the difficult economic situation in the US have led to speculation that LG is considering scrapping plans for the factory.
A source close to LGES told Korea Business in a January issue that abandoning the facility was not being considered and that the size of the facility had been determined, adding that the company had been forced into two rapidly growing businesses. It added that it is recalculating its facilities based on the secondary battery market. in North America.
Cott said LGES was keeping Queen Creek in the loop, but apparently it wasn’t about the size of the investment.
“Communications with LGES continued through 2022 while the company evaluated its initial investment,” Cott said. “They have so much faith in Queen He Creek and the State, and I am thrilled that they have decided to expand on our first project.”
The increase in investment, and the fact that LG even seemed to catch Queen Creek off guard with a quick announcement, has prompted city planners and transit agencies to take action, according to city spokeswoman Constance Halonen Wilson. It caused a dispute between the parties involved.
Halonen Wilson said, “With the recent expansion announcement, we are working with the company to assess traffic, water resources, etc. The (Pinal) county oversees air quality and its permits are available to the town. It will be submitted to the county for review instead.”
Pinal County did not respond to requests for comment on the status of air quality permits, but on its YouTube channel, Air Quality Director Mike Sundblom said the county measures potential air pollution and is working on the LGES project. said.
“We work on a wide variety of sources, from gas stations to dry cleaners to industrial buildings such as LG facilities,” he said. “It is our responsibility to enforce these rules, and we have oversight from ADEQ and EPA in this process.”
The town is as current as the first part of the facility begins.
Halonen-Wilson said, “The town oversees the site planning process and building permits (at this time, the first stage site plan, which was submitted in 2022, has been submitted/approved.
LG’s investment has increased significantly from last year, but the facility will remain intact on its original $84.4 million, 650.5-acre Ironwood Road and German Road.
“When LGES won the Arizona land in April 2022, it was anticipated that the project would have multiple phases,” said Cott. “The company’s decision to advance and expand the first phase has resulted in a substantial capital investment of $5.5 billion in addition to advancing additional phases.”
“This investment will have ripple effects in the town, region and state. The town is improving roads and infrastructure in the region. It will bring jobs,” added Cotto.
Neither the town nor LGES have speculated on a specific number of jobs, but the company said in a press release that it makes most decisions based on data-driven information, which could potentially lead to job automation. could mean.
The town is already working on road and other infrastructure expansions, including the expected northeast corner of Queen Creek, to attract more industrial development in what the town calls an advanced manufacturing corridor. I’m doing it.
According to the town’s website, “Ironwood Road will provide three northbound lanes with one additional northbound lane from German to the new SR 24 improvement.”
“Traffic lights will be designed and constructed at the intersection of Pecos Road and German half a mile north of Ironwood. This includes: Pecos Road from Ironwood to Kenworthy.”
LGES will have a facility to produce 2,170 cylindrical batteries for electric vehicles in 2025 and lithium iron phosphate “pouch” batteries for energy storage systems used in rechargeable devices such as power tools. The facility has announced that it will begin construction this year. According to LGES’ latest timetable, production of these will begin in his 2026.
The Arizona Department of Commerce recently opened trade offices in South Korea and Taiwan to strengthen ties.
The agency’s president and CEO, Sandra Watson, said in a March 24 release that “LGES has chosen to quadruple its initial investment in its plans to build another high-tech manufacturing facility. I couldn’t be more excited.
“I would like to thank CEO Kwon Young-soo and the entire team at LG Energy Solutions for their continued commitment to Arizona,” she added.
LG’s landing was a long process. Working with other town leaders to attract development to the town, Cotto recalls the first time he learned they had succeeded in luring his LG.
“We were working with the ACA on several potential projects (which remained anonymous to the town until a certain point),” Cott said.
“When ACA was able to share that the company was LG, I thought, ‘This is going to be a legacy project that truly embodies the strategic planning we’ve been doing in the northeast of town.'”
