Asia Tech Wire (June 28) -- LG Energy Solution said Friday that it will suspend construction of the energy storage system (ESS) battery production line at its U.S. plant in Arizona.

"LG Energy Solution is adjusting the pace of planned investment execution efficiently and flexibly according to market conditions, and focusing on optimizing our operations," It said. "As part of such efforts, we are temporarily putting the construction of Arizona ESS battery facility on hold."

The South Korean firm said in April that construction had begun on its planned $5.5 billion battery plant in Arizona, which is due to go into operation in 2026.

LG Energy Solution plans to produce 46-Series cylindrical batteries for electric vehicles and soft-pack lithium iron phosphate (LFP) batteries for energy storage systems at the plant, with annual production capacity expected to reach 36 GWh and 17 GWh, respectively.