South Korean battery manufacturer LG Energy Solution confirmed Thursday it will invest KRW 1.7 trillion ($1.4 billion) to build a new gigafactory in the US, Kallanish reports.

The plant in Queen Creek, Arizona, will be the first to produce cylindrical-type batteries in North America. LGES’s sole investment is targeted at the rising demand for this type of batteries both from EV manufacturers, including start-ups, and electrical tool companies.

Construction of the 11-gigawatt-hour facility is schedule to begin next quarter, with mass production slated for H2 2024. Future production expansions are also on the cards.

“With the establishment of our new Arizona plant, LG Energy Solution aims to deliver unparalleled consumer value in the rapidly growing cylindrical battery market,” says company’s ceo Youngsoo Kwon. “LGES will provide the most dependable, competitive and advanced products to rise as the best business partner that our clients value and trust.”

LGES, which already supplies batteries to Tesla and Lucid Motors, has also announced a 45 GWh gigafactory in Canada in partnership with Stellantis. The plant in Ontario should start production in 2024.