Eli Lilly said Tuesday it will invest $5 billion to build a manufacturing facility in Virginia, the first of four new U.S. plants the drugmaker has planned as it moves to expand domestic production and hedge against potential tariffs.
Global pharmaceutical companies have been increasing U.S. investment to bolster manufacturing capacity after President Donald Trump urged the industry to make more medicines domestically rather than importing active ingredients or finished medicines.
Trump has said he would start with small pharma tariffs and could raise them to as high as 250% to boost U.S. production.
Earlier this year, Lilly outlined plans to spend at least $27 billion on four new U.S. manufacturing sites to counter potential drug import duties. Since 2020, the company has committed $50 billion in capital expansion.
The new facility in Goochland County, Virginia, will produce active pharmaceutical ingredients for cancer, autoimmune and other advanced therapies.
It will also expand Lilly’s capacity to make antibody-drug conjugates, a targeted class of cancer treatments. The plant is expected to be completed within five years.
"By expanding our domestic capacity, we are building a secure, resilient supply chain," said CEO David Ricks.
Lilly said the Virginia site will create more than 650 jobs for skilled workers, including engineers and scientists and 1,800 construction jobs.
The company plans to announce the locations of the three remaining U.S. plants later this year and expects to begin making medicines at all four facilities within five years.