LG Energy Solution plans to open a $1.4 billion battery factory in Arizona in 2024, the company, which already supplies battteries to the likes of Tesla and Lucid, announced last week.

The factory will be LG's first in North America manufacturing cylindrical battery cells, the kind used by Tesla and Lucid, and construction is scheduled to being in the second quarter of 2022. The aim is to start mass production of batteries at the site by 2024, LG said in a statement to Reuters.

The company is targeting initial production capacity of 11 gigawatt-hours per year, but said it plans to consider expanding production capacity in the future, especially if more companies decide to acquire batteries from LG, including potentially from outside the auto industry.

2022 Tesla Model 3

2022 Tesla Model 3

Reuters previously reported that potential customers would include Lucid, Tesla, bus maker Proterra, and even Philip Morris, which uses lithium-ion batteries in IQOS heated tobacco sticks. None of those companies have confirmed plans to utilize LG's new factory, and LG itself only said it was responding to demand from "prominent startups."

LG didn't disclose the location of the factory, but note that Lucid's assembly plant is located in Casa Grande, Arizona. Lucid currently sources batteries from both LG and Samsung. Tesla currently relies on Panasonic for its North American battery supply, but uses LG batteries at its plant in China.

The new Arizona factory is just one side of LG's North American battery-making expansion. The company is also working with General Motors on four U.S. battery plants, including one in Ohio and one in Tennessee. LG also recently confirmed plans for a Canadian battery joint venture with Stellantis. Also scheduled to open in 2024, it will have an annual production capacity of 45 gwh.