Eli Lilly to Build Four U.S. Drug Plants in $27 Billion Expansion

Eli Lilly is making its biggest investment yet in U.S. drug manufacturing, announcing plans to spend at least $27 billion to build four new plants. The move will more than double its domestic investment since 2020, bringing its total spending to over $50 billion—the largest pharmaceutical manufacturing expansion in U.S. history. The company expects the new sites to create 3,000 full-time jobs for engineers, scientists, and technicians, plus 10,000 construction jobs as the facilities are built.

“We’re making these investments … to prepare for the demand we anticipate for future pipeline medicines across our therapeutic areas,” said David Ricks, Lilly’s CEO, during a press conference in Washington, D.C.

Expanding Drug Production and Creating Jobs

Three of the new plants will focus on making active pharmaceutical ingredients (APIs)—key components in medications like Mounjaro and Zepbound, Lilly’s blockbuster diabetes and weight-loss drugs. The fourth site will expand injectable drug production for future treatments. “There is a real gap in the supply chain in the U.S. as it relates to active ingredient availability in our country,” Ricks said.

Lilly is still deciding where to build and is accepting proposals from states interested in hosting the sites. The company expects to choose locations later this year and aims to have the facilities running within five years.

The investment comes as Lilly and rival Novo Nordisk race to meet demand in the fast-growing global obesity drug market, which some analysts predict will be worth $150 billion annually by the early 2030s.

A Push for U.S. Manufacturing

Ricks tied Lilly’s expansion to Trump-era tax cuts, calling the 2017 Tax Cuts and Jobs Act “foundational” to the company’s ability to invest in U.S. manufacturing. “It is essential that these policies are extended this year,” he said.

Beyond expanding production, Lilly’s move also aims to tackle drug shortages and reduce the need for compounded versions of its injectables, which some pharmacies have been selling as cheaper alternatives. “America faces a growing threat from an influx of counterfeit and compounded medications,” Ricks said. The FDA recently declared the shortage of tirzepatide over, meaning many compounding pharmacies will no longer be able to produce copycat versions of Zepbound and Mounjaro.

Lilly says this investment will strengthen domestic supply chains, boost local economies, and create long…