QUEEN CREEK, Ariz. — Construction crews at one-half of a $5.5 billion project in Queen Creek are at a standstill, all because of changes to the global market for battery power.
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The Town of Queen Creek and Pinal County officials brokered a deal with the Korean company LG to produce batteries for electric vehicles and for energy storage like the usage of solar panels.
Leaders in the East Valley sold the land east of Queen Creek to LG to develop the battery facility. They hoped it would create thousands of good paying jobs for their citizens.
“80, to 85% of our population, like you brought up that's leaving our area to go to work," Pinal County Supervisor for District Two, Mike Goodman said.
However, the long-awaited completion of one of LG's buildings has been put on pause. In a statement to 12News, a spokesperson for LG said: "LG Energy Solution is adjusting the pace of planned investment execution efficiently and flexibly according to market conditions, and focusing on optimizing our operations. As part of such efforts, we are temporarily putting the construction of Arizona ESS battery facility on hold."
The part of the facility placed on hold is for battery storage. The construction for developing batteries for EV vehicles remains on schedule, to be completed by the end of 2025, per Pinal County officials.
LG did not specify what has changed in the global market for batteries and EV energy, but local officials believe it may have to do with how a change in the White House could impact the market for battery power nationwide.
“If the market demands these type of things, they'll go forward. And so I but I don't think the market's going to change that much. I think we're just in a volatile time right now, especially because of the presidential election, and that's going to be a big difference on how things go," Goodman said.
Despite these delays, all stakeholders involved are optimistic that market changes won't keep construction cranes standing still in the desert heat for too long.
“I mean, they spend all that money on all that property, and they've got a third phase that's going to be coming down the pipeline, and they're committed," Goodman said.
The Town of Queen Creek provided the following statement on LG's decision: "LG Energy Solution (LGES) recently shared they are evaluating their projects. They’ve emphasized this does not impact phase 1, currently under construction; it does however impact phase 2, which was announced in March 2023. According to LGES, phase 2 is temporarily paused. The Town is continuing public infrastructure improvements that are related to phase 1 and evaluating timing of the public infrastructure improvements related to phase 2. As noted during the previous pause in 2022, construction delays and project timeline changes are not uncommon, particularly for projects of this scale. The Town and the County remain committed to the advanced manufacturing corridor and the continued partnership with LGES."
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