Eli Lilly has unveiled plans to invest more than $6 billion in a state-of-the-art active pharmaceutical ingredient (API) manufacturing facility in Huntsville, Alabama, as part of a broader strategy to bolster domestic drug production and supply chain resilience.
The investment marks one of the largest single-site private capital commitments in Alabama’s history and represents the third of four new major US manufacturing sites the company has announced.
The new facility will focus on producing small-molecule synthetic and peptide medicines, including orforglipron, Lilly’s first oral GLP-1 receptor agonist currently in development for obesity.
The company expects to submit orforglipron to global regulatory authorities by the end of this year, and the Huntsville site will support expanded production as that program advances.
Related: Eli Lilly Announces $27B Investment to Boost US Manufacturing
Construction is expected to begin in 2026 and run through 2032, generating approximately 3,000 construction jobs and creating around 450 permanent high-skill positions for engineers, scientists, operations personnel and laboratory technicians.
The facility was selected from a field of more than 300 potential locations, with its proximity to the HudsonAlpha Institute for Biotechnology, a major bioscience research and workforce hub, cited as a key factor in the decision.
Lilly CEO David A. Ricks emphasized that the investment is part of a larger domestic manufacturing push to reduce reliance on imported ingredients and improve access to essential medicines, and explained why the company chose Huntsville.
“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 Ricks. “Today’s investment continues the onshoring of API production, strengthening supply chain resilience and reliable access to medicines for patients in the US.”
State and local officials, including Alabama Governor Kay Ivey and Huntsville Mayor Tommy Battle, lauded the project for its potential to transform the region’s economic and innovation landscape, noting its historic significance and potential to establish Alabama as a leading biopharma manufacturing hub.
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Lilly said the new Huntsville facility will leverage advanced technologies such as AI-driven automation, machine learning, digital monitoring systems and advanced data analytics to “drive right-first-time execution.”
The investment is part of Lilly’s $27 billion “Lilly in America” plan to increase its domestic manufacturing footprint. The plan has included significant investments in Texas and Virginia, as part of “mega sites” the company is building across the country.
Lilly said it will share the final location of its four-site US manufacturing buildout in the next few weeks.
In November, Lilly also announced a $1.2 billion investment to expand its Puerto Rico site.
Other major drugmakers have also announced sweeping US investment plans in recent months. Merck & Co. has committed $70 billion over the next five years for manufacturing, R&D and capital projects. The investment includes a $1 billion vaccine production facility in North Carolina and a $3 billion pharmaceutical manufacturing center in Virginia.
Roche has pledged $50 billion that will include expansion of R&D and manufacturing capacity at a gene therapy facility in Pennsylvania and a continuous glucose monitoring (CGM) plant in Indiana. Johnson & Johnson has outlined a $55 billion investment strategy in the US.
While keeping a focus on boosting US manufacturing amid pressures from the Trump administration to make drugs domestically, Lilly isn’t neglecting its global presence. Alongside the Puerto Rico expansion, the company also shared that it is building a $3 billion manufacturing facility in the Netherlands.
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