Eli Lilly Advances U.S. Manufacturing Buildout

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Amid a $50 billion plan to reshore medicine production, Eli Lilly broke ground on a $6.5 billion manufacturing plant in Houston, Texas. Industrial Info Resources is tracking $57 billion worth of active and planned projects from Eli Lilly worldwide, about 90% of which is in the U.S.

New U.S. Plant Construction

Eli Lilly and Company recently broke ground on a $6.5 billion manufacturing plant in Houston, Texas, which is part of a $50 billion plan to reshore production to the U.S. Industrial Info Resources data show $57 billion worth of active and planned projects from Eli Lilly worldwide, about 90% of which is in the U.S.

The company has said the multibillion-dollar effort is designed to “meet growing demand at home and export American-made medicines to people around the world.”

This comes as major global pharma and biotech companies have been hard at work reshoring and expanding domestic production in the face of U.S. demand and potential import tariffs. However, Eli Lilly and 16 other large drugmakers are exempt from President Donald Trump’s 100% Section 232 tariff on imported patented drugs and their active pharmaceutical ingredients (APIs)–the chemical compounds in medicine–that was set to take effect on July 31.

Annette Kreuger, Industrial Info’s vice president of research for the Pharma-Biotech Industry, said: “We have definitely seen a spike in domestic capital activity. It surpasses anything experienced during the pandemic.”

“The vast majority of these projects are in the biological sector–the cash cow, if you will, for the industry,” she continued. “Tariffs and policy can change with the wind, but one thing is certain: Companies want to ensure supply of their most profitable drugs. What is good about these plants is their flexibility to change over to other products as they come to the commercial production stage.”

“Will the growth spike continue? It can’t, not at this level, and it will settle down into a more normal pattern of investment. But, make no mistake, these massive projects are making it to construction all over the country.”

Eli Lilly’s plant under construction in Houston will produce APIs that will support planned production of medicine such as Foundayo (orforglipron), Lilly’s first U.S. Food & Drug Administration-approved, once-daily oral pill for weight loss that can be taken without food or water restrictions. The plant also will support other small-molecule medicines and advanced therapeutics. Construction is expected to wrap up next year.

Lilly has said Foundayo is under regulatory review in more than 40 countries, with a full global rollout targeted for 2027. The company also is studying Foundayo for other applications, including type 2 diabetes and obstructive sleep apnea.

Industrial Info Resources offers more information on the Houston project in its Global Market Intelligence (GMI) Pharmaceutical-Biotech Plant and Project databases, where readers can find details–including construction schedules, investment values and key contacts–in a plant profile and related project reports.

GLP-1s, in particular, are a main focus for Eli Lilly and are driving billions of dollars’ worth of investment for the company, as well as the global pharma and bio industry. For more information, see August 27, 2026, article – GLP-1 Drugs Drive Pharma Construction Wave.

The project marks one of 10 U.S. manufacturing sites–and its fifth location to produce U.S.-based APIs–announced by Eli Lilly since 2020.

Eli Lilly’s Other Investment Projects

Other domestic projects underway aimed at producing APIs for GLP-1s include construction of the Lilly Lebanon API manufacturing plant in Lebanon, Indiana, which is designed for mass production of Zepbound, Mounjaro and Foundayo. The plant is part of a larger complex that also includes the $4.5 billion Lilly Medicine Foundry, which is designed for the research, trial-supply production and manufacturing process development for Zepbound and Mounjaro.

When fully operational, Lilly Lebanon API would be the largest API manufacturing site in U.S. history. Readers can view a detailed list of project reports related to Eli Lilly’s overall investment in Lebanon, which includes ongoing construction of an advanced therapies campus.

Other planned API plants are located near Richmond, Virginia, and Huntsville, Alabama.

Manufacturing sites also are planned for the production of injectable medicines and manufacturing devices, including those in Concord, North Carolina, Kenosha, Wisconsin, and Lehigh Valley, Pennsylvania.

Industrial Info Resources offers a full list of reports for active and planned Eli Lilly projects across the U.S. and worldwide.

Lilly has a major presence in Europe and plans to spend US$3 billion on an oral solid medicines manufacturing facility in Katwijk, Netherlands, which is designed to support medication such as orforglipron. Final construction permits are still under review. Readers can view more information here.

Industrial Info Resources also offers a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Key Takeaways

• $57 billion: Total investment value of active and planned projects from Eli Lilly worldwide, about 90% of which is in the U.S.
• Production of APIs, especially for GLP-1s, is a main focus.

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR’s Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).

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Eli Lilly Breaks Ground On $6.5 Billion Houston Manufacturing Facility

Eli Lilly and Company has broken ground on a $6.5 billion manufacturing facility in Houston, Texas, marking another milestone in the pharmaceutical company’s $50 billion initiative to expand domestic medicine production. The facility is one of 10 U.S. manufacturing sites Lilly has announced since 2020 and will produce active pharmaceutical ingredients (APIs) for Foundayo (orforglipron), the company’s first synthetic oral GLP-1 medicine, alongside other small-molecule medicines and advanced therapeutics.

The project is expected to create more than 600 high-wage permanent jobs and approximately 4,000 construction jobs. Permanent positions will include engineers, scientists, operations personnel, and laboratory technicians. Lilly has begun recruiting employees in the Houston area as it prepares to build and operate the new manufacturing complex.

The Houston facility will be Lilly’s fifth U.S. manufacturing location dedicated to producing active pharmaceutical ingredients among the sites announced since 2020. The investment is part of the company’s broader strategy to bring pharmaceutical manufacturing back to the United States, strengthen domestic supply chains, and expand production capacity to meet growing demand for its medicines in the United States and international markets.

One of the facility’s primary products will be Foundayo (orforglipron), a once-daily oral GLP-1 receptor agonist approved in the United States for weight management in adults with obesity or adults with overweight and a weight-related condition. Unlike peptide-based GLP-1 therapies, Foundayo is a small-molecule medicine manufactured using more established production technologies that can be more readily scaled.

Foundayo is currently under regulatory review in more than 40 countries, with Lilly targeting a full global rollout in 2027. The company is also studying the medicine for additional indications, including type 2 diabetes and obstructive sleep apnea, with further clinical data expected later in 2026.

Beyond Foundayo, the Houston manufacturing site will support the production of advanced therapeutics, including oligonucleotides, a class of medicines designed to work at the genetic level by inhibiting the production of specific proteins. These therapies represent an expanding area of pharmaceutical development, with potential applications in treating diseases closer to their underlying biological causes.

The manufacturing complex will incorporate artificial intelligence, machine learning, digitally integrated systems, and advanced data analytics to improve manufacturing operations. Digital automation will be embedded throughout the facility to streamline production processes, support quality control, and help maintain a reliable supply of medicines.

Lilly is also making a substantial investment in workforce development to support the facility’s operations. The company is providing $12.5 million to support a partnership with San Jacinto College, establishing training pathways for Houston-area residents interested in advanced chemical synthesis manufacturing careers.

The partnership will expand the college’s training equipment and facilities while preparing technicians, manufacturing operators, maintenance professionals, and other skilled workers. Lilly employees will also contribute their expertise to curriculum development and instructor preparation. The training programs will provide opportunities for individuals without previous manufacturing experience to enter the biopharmaceutical industry.

Separately, Lilly is contributing $2.5 million to the San Jacinto College Foundation to provide scholarships for eligible students. Together, the workforce development partnership and scholarship contribution represent $15 million in support for education and workforce development in the Houston region.

The Houston project is part of Lilly’s broader expansion of its American manufacturing network. Of the 10 U.S. manufacturing locations announced since 2020, five will produce active pharmaceutical ingredients. These include facilities in Richmond, Virginia; Huntsville, Alabama; Houston, Texas; and two locations in Lebanon, Indiana.

The company’s other announced projects include four facilities dedicated to injectable medicines and manufacturing devices in North Carolina, Wisconsin, and Pennsylvania, along with an advanced therapies facility in Lebanon, Indiana, focused on genetic medicines.

The expansion is intended to establish additional domestic manufacturing capacity for Lilly’s growing portfolio of medicines while supporting the development of next-generation therapies. The Houston investment will also strengthen the region’s pharmaceutical manufacturing workforce through its collaboration with San Jacinto College and create new opportunities for skilled workers throughout the greater Houston area.

KEY QUOTES:

“We are thrilled to break ground on our latest ‘medicines made in America’ site in the great state of Texas. This $6.5B investment will help change the game for tens of millions of people suffering from overweight, obesity and its consequences like diabetes. We will make and ship Lilly’s latest products from Texas to people here at home and around the world.”

David A. Ricks, Chair and CEO of Eli Lilly and Company

“When you invest in a place like Houston, you invest in its people first. This facility will run on the talent of this community, powered by our relationship with San Jacinto College. We’re hiring across the greater Houston area to help residents build careers close to home. The facility itself is being built to the highest standards for safety, quality and responsible stewardship of the environment, and every one of these jobs helps bring innovative medicines to the patients counting on them.”

Edgardo Hernandez, Executive Vice President and President of Lilly Manufacturing Operations

“Eli Lilly’s manufacturing investment in Generation Park is a tremendous opportunity for the Houston region. San Jacinto College is proud to work with Lilly to develop the skilled workforce needed to support the growth of biopharmaceutical manufacturing. Together, we will expand industry-informed education and hands-on training pathways that prepare students and incumbent workers with the technical skills these advanced manufacturing careers require. This relationship will build a strong, sustainable talent pipeline for Lilly while creating meaningful, high-demand career opportunities across our region.”

Dr. Brenda Hellyer, Chancellor of San Jacinto College

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Eli Lilly and Company (LLY) Expands U.S. Manufacturing and Advances Breakthrough Therapies

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