TLDR
- Eli Lilly will spend $6 billion building a manufacturing plant in Huntsville, Alabama, with operations starting in 2032.
- The facility will produce orforglipron, the company’s oral weight-loss drug awaiting FDA approval expected in early 2026.
- Construction launches in 2026, generating 3,000 temporary construction jobs and 450 permanent positions.
- The Alabama plant is Eli Lilly’s third announced U.S. facility in a broader $27 billion manufacturing expansion.
- Domestic production expansion follows Trump administration pressure to reduce pharmaceutical ingredient imports.
Eli Lilly announced a $6 billion investment Tuesday to construct a manufacturing facility in Huntsville, Alabama. The plant will produce active pharmaceutical ingredients for several company medications.
This marks the third U.S. manufacturing site Eli Lilly has announced recently. The drugmaker committed to a $27 billion expansion across four domestic facilities in February.
Construction starts in 2026. The plant is scheduled to begin operations in 2032.
The facility will manufacture small-molecule synthetic and peptide drugs. Key products include orforglipron, Eli Lilly’s experimental oral obesity medication.
The FDA granted orforglipron priority review status in November. This designation accelerates the review process to potentially just months.
Approval is expected in early 2026. The daily pill provides an alternative to existing weekly injection treatments.
Production Capacity Expansion
Additional manufacturing capacity addresses growing demand in the weight-loss drug market. Eli Lilly and competitor Novo Nordisk both experienced supply shortages when injection medication demand surged.
Both companies have stabilized their supply chains. New facilities prepare for anticipated demand once oral medications launch.
Eli Lilly invested $23 billion in U.S. manufacturing between 2020 and early 2025. The $27 billion commitment represents a substantial increase in domestic production.
The Trump administration pushed pharmaceutical companies to manufacture more drugs in America. Proposed tariffs on imported pharmaceuticals and ingredients created urgency around domestic production.
Recent drug pricing deals with the administration have eased tariff worries. Participating companies receive exemptions from threatened import duties.
Economic Impact and Jobs
The Alabama plant will create 450 permanent positions. Jobs include engineers, scientists, operations staff, and laboratory technicians.
Construction will employ roughly 3,000 workers. Eli Lilly estimates the investment will generate four dollars of local economic activity for every dollar spent.
Governor Kay Ivey called it Alabama’s largest initial investment in state history. More than 300 locations competed to host the facility.
Proximity to the HudsonAlpha Institute for Biotechnology helped secure the location. The bioscience campus offers workforce training and research partnerships.
Technology and Sustainability Goals
The plant will utilize machine learning and artificial intelligence systems. Digital monitoring and automation will be integrated throughout manufacturing operations.
CEO David Ricks stated the investment advances domestic pharmaceutical ingredient production. Onshoring improves supply chain resilience and ensures reliable medicine access for U.S. patients.
Eli Lilly plans to pursue carbon neutrality at the Alabama site. The company emphasizes environmental responsibility in new facility construction.
Manufacturing operations head Edgardo Hernandez confirmed sustainability commitments. The plant design incorporates energy-efficient systems and reduced carbon footprint goals.
Alabama officials praised the investment for its long-term economic impact. The facility positions Huntsville as a growing pharmaceutical manufacturing hub.
Eli Lilly will reveal the location of its fourth new U.S. manufacturing facility soon. This final site completes the company’s $27 billion domestic expansion strategy.
The Alabama facility will produce orforglipron and other medicines when it opens in 2032, bringing 450 jobs to the Huntsville area.
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