By Roland Murphy for AZBEX
Sources with two different firms attached to the LG Energy Solution Battery Plant – a 1.4MSF advanced manufacturing project at Germann Road and Ironwood Drive in Queen Creek – have confirmed to DATABEX research staff that the project has been put on hold.
AZBEX was the first outlet to report the plan’s existence in an exclusive feature back in March. (AZBEX, Mar. 18th)
The change in status was first discovered in a Wednesday, June 22nd conversation with Blount Contracting, Inc., the grading subcontractor for the development. DATABEX staff was told LG Energy Solution has pulled the contract for their civil work and that it will not be starting for the next two-to-three years.
Research staff then contacted Yates Construction, the general contractor for the project. Yates’ representative confirmed LGES had placed the project on hold on June 17th and estimated the hold will remain in place for four-to-six months.
AZBEX staff has not yet been able to identify a cause for the decision or for the different time estimates associated with the delay.
A BEX Companies staff member was sent to check out the site Wednesday afternoon. She reported there that there are no trucks, materials, fencing or equipment in place and no sign of any activity.
LGES issued its formal announcement of the Queen Creek facility in a press release dated March 23rd, touting the plant as “the first ever cylindrical-type battery manufacturing plant in North America.”
The release stated, “The construction of this 11GWh capacity site is set to begin in the second quarter of this year, with plans for mass production slated in the second half of 2024. Batteries produced from Arizona plant will be supplied to EV manufacturers including prominent startups and electric tool companies based in North America.”
LGES does not provide a named contact or direct email for media inquiries. AZBEX contacted the company through its media request webpage and asked for confirmation or denial as to whether or not the project had been put on hold, the estimated length of the delay, and what the reasons were. No response was received by press time.
Voicemail and email messages were left for Queen Creek Director of Economic Development Doreen Cott and Pinal County Economic and Workforce Development Director James Smith asking similar questions and also asking if the delay would impact any scheduled meetings, such as the air quality hearing scheduled in July, and if any related projects would be impacted.
The development agreement between LGES, the Town of Queen Creek and Pinal County calls for the development of a Workforce Training Facility – likely at the Central Arizona College Superstition Mountain Campus in Apache Junction – and for Queen Creek to undertake water and street infrastructure improvements in the area around the plant site.
Earlier this month, the Queen Creek Town Council approved $34M to fund the infrastructure development.
The Town and Pinal County provided the following responses to our questions on Thursday, June 23rd.
Q: When did LGES inform Queen Creek and Pinal County about the change and what reasons were given?
A: The company has not shared any changes.
Q: Has LGES withdrawn from the development agreement?
A: No.
Q. Did the 6/21 public information meeting about the project take place. If so, why, given that the project is on hold?
A. The meeting was held on June 21st to share information on the economic development process, Arizona State Land, environmental oversight, public safety preparedness and an overview of the project.
Q: Will the other planned meetings, including the July air quality meeting, continue as scheduled or will they be postponed?
A: The meeting is proceeding as planned.
Q: Will the delay impact the timelines on Queen Creek’s infrastructure improvement projects around the site or on the workforce training facility referenced in the development agreement?
A: The Town is continuing to move forward with infrastructure improvements. The County is continuing discussions regarding the training facility.
The responses concluded with the following statement: “The Town and the County will continue to work with the company on this milestone project. We remain excited about what this advanced manufacturing corridor will do for our region and State as it continues to grow and attract more interest from companies domestically, and globally.”
This is an ongoing story, and we are following it closely. We hope to have more information in upcoming issues. DATABEX subscribers can check the project entry for updates as we receive them.
