Eli Lilly plans $6 Billion Alabama plant to expand production capacity

Eli Lilly said Tuesday it will invest $6 billion in a new manufacturing plant in Huntsville, Alabama, to increase output of its experimental obesity pill orforglipron and other medicines.

The project is the company’s third planned U.S. facility in a broader expansion. In February, Eli Lilly outlined plans to spend at least $27 billion on four new domestic plants. Those commitments follow more than $23 billion in U.S. investments made since 2020.

Construction on the Alabama site is scheduled to begin in 2026. The company expects the facility to be completed in 2032.

Eli Lilly said the plant will support the onshoring of active pharmaceutical ingredient production and improve the reliability of U.S. medicine supply. CEO David Ricks said the move will strengthen the firm’s supply chain and reinforce access to its treatments.

The additional capacity is intended to support orforglipron as Eli Lilly prepares to seek regulatory clearance for the pill. The company is competing to maintain its position in the expanding GLP-1 drug market, where demand has surged for obesity and diabetes treatments. Eli Lilly and rival Novo Nordisk have previously faced shortages for their weekly injection products but have since eased those constraints.

Orforglipron advanced further in the approval process in November, when the Food and Drug Administration granted it a priority review voucher. That designation is expected to shorten the agency’s evaluation timeline to a period of several months.

Drugmakers have been increasing U.S. production following threats by President Donald Trump to impose tariffs on imported pharmaceuticals. Those concerns have lessened after recent pricing agreements with the administration that exempt companies from the proposed levies.

Eli Lilly said the Alabama plant will create about 450 full-time positions, including roles for engineers, scientists, operations staff and lab technicians. The company said the project will also generate 3,000 construction jobs during the building phase.