Eli Lilly Pennsylvania Plant to Boost Capacity

Eli Lilly Pennsylvania plant adds U.S. drugmaking capacity and embodies a $3.5 billion capital push that keeps investor focus on factory build-out.

January 30, 2026·2 min read
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Flat filled vector of a medicine vial fused with a factory icon to evoke the Eli Lilly Pennsylvania plant expansion.

KEY TAKEAWAYS

  • Eli Lilly announced a $3.5 billion investment for a Lehigh Valley manufacturing facility.
  • The plant is part of more than $50.0 billion in U.S. capital expansion since 2020.
  • The project will create 850 permanent manufacturing jobs and more than 2,000 construction jobs.

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Eli Lilly said in a press release on Jan. 30, 2026, that it will build a $3.5 billion manufacturing facility in Fogelsville, Lehigh County, Pennsylvania, to produce next-generation weight-loss therapies, expand U.S. production capacity, and create thousands of construction and manufacturing jobs.

Plant, Production, Jobs, and Timeline

The company will invest $3.5 billion to build an injectable medicine and device manufacturing facility in Upper Macungie Township, Lehigh County. The site will produce next-generation weight-loss therapies, including retatrutide, an investigational triple-receptor agonist targeting GIP, GLP-1, and glucagon receptors. This will be Lilly’s first manufacturing facility in Pennsylvania and part of more than $50 billion in U.S. capital expansion since 2020. It marks the company’s tenth U.S. manufacturing site announced since 2020 and its fourth since February 2025.

The project will create 850 permanent manufacturing jobs, including engineers, scientists, operations staff, and laboratory technicians, along with more than 2,000 construction jobs. Construction is expected to begin in 2026, with operations planned to start in 2031.

Lilly chair and CEO David A. Ricks said, “To meet increasing demand, we’re expanding our U.S. manufacturing network, with Lehigh Valley adding capacity for next-generation weight-loss medicines.”

Incentives and Site Selection

The Pennsylvania governor’s office announced up to $100 million in state incentives for the project. These include up to $50 million in PA Edge tax credits, a $25 million PA SITES grant, a $25 million Pennsylvania First grant, and up to $5 million in Redevelopment Assistance Capital Program funding for workforce training. Permitting support will be provided through the PA Permit Fast Track Program.

Lilly selected the Fogelsville site from more than 300 applicants due to its proximity to STEM universities, transportation links, utilities, zoning, and existing incentives. The company noted that planned investments, hiring, and timing are subject to risks and uncertainties related to manufacturing, development, commercialization, costs, and scheduling.

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