Eli Lilly to build $6 billion factory in Alabama

Eli Lilly and Co. announced December 9 that it would build a new $6 billion factory in Huntsville, Alabama for production of “small molecule synthetic and peptide medicines,” including the company’s oral GLP-1 medicine, orforglipron. In a company statement, Lilly said the factory would create 450 jobs, including engineers, scientists and lab technicians. The new factory is expected to be finished in 2032.

According to Lilly, the plant is the third of four planned sites in the U.S. In March, the company said it would spend a total of $27 billion on the four new plants; In September, the company said it would spend $5 billion on a new factory near Richmond, Virginia, and $6.5 billion on a plant in Houston, Texas. If the company doesn’t adjust the numbers of its March announcement, its fourth, unannounced factory will be worth $9.5 billion. In its December 9 statement, Lilly said it would announce the fourth factory’s location “in the coming weeks.”

The new plants are in addition to the company’s October announcement it would spend $1.2 billion to expand its plant in Carolina, Puerto Rico.

The company’s Puerto Rico plant, as well as its in-progress plants in Houston and Huntsville, will kickstart Lilly’s production of Orforglipron. As a GLP-1 medicine, orforglipron uses a similar chemical mechanism to the popular semaglutide diabetes and obesity drugs Ozempic and Wegovy, but comes in pill form: Existing GLP-1 medications come in prefilled injection syringes. Lilly’s version of the drug is currently going through safety trials for weight loss and type 2 diabetes treatment.

What people are saying

"Huntsville's track record of science and innovation, supported by advanced manufacturing expertise and a skilled workforce, makes Alabama an ideal location for Lilly to expand domestic manufacturing capacity for next‑generation medicines," said David A. Ricks, Lilly chair and CEO. "Today's investment continues the onshoring of active pharmaceutical ingredient (API) production, strengthening supply chain resilience and reliable access to medicines for patients in the U.S."

"By establishing this new facility, Lilly is deepening America's expertise in advanced chemical synthesis and setting new standards for sustainable manufacturing," said Edgardo Hernandez, president of Lilly Manufacturing Operations. "Our investment not only expands our technical capabilities but also reinforces our commitment to environmental stewardship, leveraging innovative processes to minimize waste and achieve carbon neutrality. Each step forward strengthens our U.S. operations and supports healthier communities for the future."

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