The construction of the initial plant remains unaffected, with production slated to commence in 2026.

LG Energy Solution has temporarily halted the second phase of its construction of its $5.5 billion battery manufacturing facility in Queen Creek, Arizona.

The company had intended to develop two battery manufacturing plants in Queen Creek: one for cylindrical batteries used in electric vehicles and another for energy storage systems (ESS).

LGES is projected to become the largest employer in Queen Creek, offering nearly 4,000 jobs.

The vertical construction of the cylindrical battery plant, which began earlier this year, will not be affected by this decision. The South Korean company confirmed that the second plant's construction pause will not influence the ongoing development of the first plant.

The first LGES battery plant, currently under construction by Yates Construction and designed by Ware Malcomb, is scheduled to start production in 2026.