AbbVie to invest $380 million to expand US manufacturing in Illinois

Feb 23 (Reuters) – AbbVie on Monday said it would invest $380 million to build two new active pharmaceutical ingredient manufacturing facilities at its Illinois campus, expanding its domestic production capacity for its neuroscience and obesity medicines.

The investment is part of AbbVie’s broader effort to scale up domestic manufacturing, as drugmakers are scrambling to shore up their U.S. manufacturing capacity and domestic inventory amid the Trump administration’s hefty tariffs on pharmaceutical imports into the country.

The U.S. government imposed a 100% tariff on branded drugs in October, but said it would only apply to producers who had not already broken ground on U.S. manufacturing plants.

AbbVie said the construction at the new facility in North Chicago, Illinois would begin in spring 2026, with both new facilities expected to be fully operational in 2029.

The new facilities will integrate advanced manufacturing technologies and artificial intelligence to support production of future pipeline medicines, the company said.

API production – the process of making a drug’s active chemical components – is one of the most complex steps in pharmaceutical manufacturing, the drugmaker said.

AbbVie said it plans to hire 300 people in North Chicago, including engineers, scientists, manufacturing operators and lab technicians.

In January, it committed $100 billion over the next decade to U.S.-based research and development, including an earlier $195 million expansion at the same North Chicago site to boost API production for immunology, oncology and neuroscience drugs.

AbbVie already has 11 manufacturing sites in the U.S. and is also in discussions with multiple U.S. states about potential projects and expects to announce further investments in 2026.

(Reporting by Siddhi Mahatole in Bengaluru; Editing by Maju Samuel)

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Did New U.S. Defense-Focused Manufacturing Partnerships Just Shift Amprius Technologies’ (AMPX) Investment Narrative?

• Recently, Needham began covering Amprius Technologies, highlighting its silicon-anode battery technology and citing a US$35 million unmanned aerial systems order alongside contract manufacturing capacity of 1.8 GWh.
• A separate agreement made Nanotech Energy Amprius’ first U.S.-based manufacturing partner, aligning its high-performance batteries with domestic sourcing rules for defense applications.
• Next, we’ll examine how this new U.S. manufacturing partnership may influence Amprius’ investment narrative and future growth assumptions.

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Amprius Technologies Investment Narrative Recap

To own Amprius, you need to believe its silicon-anode batteries can convert early traction in drones and defense into durable, profitable demand while it scales manufacturing. The Nanotech Energy partnership directly addresses one near term catalyst and risk at once: it could support US defense opportunities that require local supply, while beginning to reduce the company’s heavy reliance on overseas contract manufacturing and the related geopolitical and supply chain uncertainties.

Among the recent updates, the Nanotech Energy alliance stands out as most relevant. By adding Amprius’ first US-based manufacturing partner for its silicon-anode cells, the company is creating a domestic pathway that aligns with updated National Defense Authorization Act sourcing rules. For investors focused on catalysts, this matters because it directly intersects with Amprius’ concentration in aviation and drones and its goal of securing higher visibility, defense-linked production orders.

Yet behind the promise of US manufacturing, investors should also be aware of how concentrated defense and drone demand leaves Amprius exposed to shifts in procurement cycles and…

Read the full narrative on Amprius Technologies (it’s free!)

Amprius Technologies’ narrative projects $306.6 million revenue and $13.4 million earnings by 2028. This requires 89.8% yearly revenue growth and a $52.1 million earnings increase from $-38.7 million today.

Uncover how Amprius Technologies’ forecasts yield a $17.57 fair value, a 85% upside to its current price.

Exploring Other Perspectives

AMPX 1-Year Stock Price Chart

Some of the lowest ranked analysts took a far more cautious view, even while modeling roughly 77.6% annual revenue growth and a potential US$25.5 million profit by 2028, highlighting how sensitive those outcomes could be if drone demand weakens or external manufacturing partners run into trouble.

Explore 9 other fair value estimates on Amprius Technologies – why the stock might be worth less than half the current price!

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Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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