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Eli Lilly to Build $5 Billion Manufacturing Plant in Virginia, Expanding US Biopharma Capacity

Key Takeaways

  • Eli Lilly's $5 billion Virginia plant is part of a $50 billion US expansion, focusing on antibody-drug conjugates and bioconjugate innovation.
  • The facility will create 650 high-paying jobs and 1,800 construction jobs, boosting Virginia's economy and pharmaceutical supply chain.
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The new Goochland County facility will serve as Lilly’s first fully integrated API and drug product site, focusing on antibody-drug conjugates, while creating thousands of jobs and strengthening domestic supply chains.

Image Credit: Adobe Stock Images/MichaelVi.com

Image Credit: Adobe Stock Images/MichaelVi.com


Eli Lilly and Company intends to construct a $5 billion production plant in Goochland County, VA.1 The new manufacturing site—located just west of Richmond—will be the company's first fully integrated facility dedicated to active pharmaceutical ingredient (API) and drug product.

Part of a larger US manufacturing expansion

Plans for domestic manufacturing date back to February of this year, when Lilly announced its interest in boosting its domestic medicine manufacturing across various therapeutic areas via the construction of four new pharma US manufacturing facilities.

This Lilly initiative occurs during a time when the future of tariffs continue to be in question. Earlier this month, the Trump administration requested that the US Supreme Court hear out an appeal to overturn a previous ruling by a lower court declaring that a majority of the president’s tariffs are null and void.2

In a 7-4 decision, the US Court of Appeals for the Federal Circuit ruled that President Trump exceeded his power in enacting the import taxes on many countries across the globe. The tariffs were enacted to encourage local manufacturing, being that these wouldn’t be subject to import taxes.

The company plans to announce the three remaining US manufacturing sites later this year and expects to begin producing meds at all four facilities within five years.

Focus on antibody-drug conjugates and bioconjugate innovation

As for the newly announced Virginia facility—which will be home to the manufacturing of antibody-drug conjugates (ADCs)—it is the first of several plants that are forthcoming; it’s part of a grander $50 billion in US capital expansion commitments that started in 2020.

An ADC is a type of targeted therapy that provides powerful medicines straight to diseased cells. It combines the specificity of monoclonal antibodies with the strength of cytotoxic drugs, acting as a precise carrier that enhances treatment effectiveness while also limiting damage to healthy tissue. While most commonly used in cancer treatment, ADCs are also being studied for autoimmune disorders and other diseases.

Fast Facts

  • Investment: $5 billion to build Lilly’s first fully integrated API and drug product site in Goochland County, VA
  • Focus: Antibody-drug conjugates (ADCs) and bioconjugate innovation
  • Jobs: 650 permanent positions, 1,800 construction jobs
  • Technology: Advanced AI, machine learning, and automation, with local university and community partnerships

"Our investment in Virginia underscores our commitment to US innovation and manufacturing, creating high-quality jobs, strengthening communities, and advancing the health and well-being of Americans nationwide," commented David A. Ricks, Lilly chair and CEO. "By expanding our domestic capacity, we're building a secure, resilient supply chain that delivers for patients today and supports the breakthrough medicines of tomorrow."

The manufacturing plant is anticipated to create new high-paying jobs for the state of Virginia, including highly skilled engineers, scientists, operations personnel, and lab technicians. Projections also expected it to help the local economy, not only opening up construction jobs to the area, but anticipating that for every dollar invested in the facility, up to four dollars will be produced in local economic activity.

"Lilly is one of the world's great innovators, and I want to thank them for this significant commitment to Virginia," noted Governor Glenn Youngkin. "This new facility in Goochland County will create 650 great jobs, along with 1,800 construction jobs, and deliver some of the most advanced medicines in Lilly's portfolio, powered by the unmatched talent of our Virginia workforce. By expanding manufacturing capacity here in the United States, we are strengthening our economy, securing America's critical pharmaceutical supply chain, and positioning Virginia to lead in the industries that will drive innovation for generations to come."

Advanced technologies and local partnerships

Lilly plans to leverage advanced tech, including AI, automation, and machine learning, at the new site in order to help provide precise execution while maintaining a safe, reliable supply of medicines.

"This isn't just another manufacturing site—it represents a significant milestone for Lilly, as we begin building our first bioconjugate facility," said Edgardo Hernandez, executive vice president and president of Lilly manufacturing operations. "With this cutting-edge site, Lilly is setting a new benchmark in bioconjugate innovation, advancing technologies that will expand what's possible for patients. This investment reflects our bold vision, our commitment to transformative technologies and our dedication to being a good neighbor through sustainability efforts and support of local education and community partnerships."

References

1. Lilly Announces Plans to Build $5 Billion Manufacturing Facility in Virginia. Eli Lilly and Company. September 16, 2025. Accessed September 17, 2025. https://investor.lilly.com/news-releases/news-release-details/lilly-announces-plans-build-5-billion-manufacturing-facility

2. Saraceno N. Trump Pushes Supreme Court to Save Tariffs After Appeals Court Ruling Limits Presidential Power. Pharmaceutical Commerce. September 4, 2025. Accessed September 17, 2025. https://www.pharmaceuticalcommerce.com/view/trump-pushes-supreme-court-save-tariffs-appeals-court-ruling

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