Pharmaceutical giant Eli Lilly and Company has announced plans to construct a massive $6.5 billion manufacturing facility in Houston, Texas, marking a significant step in its ongoing efforts to expand domestic production of essential medicines. The new site, located at Generation Park in the Lake Houston area, will specialize in producing active pharmaceutical ingredients (APIs) for small molecule synthetic drugs across key therapeutic areas, including cardiometabolic health, oncology, immunology, and neuroscience.
This announcement represents Lilly’s eighth U.S. manufacturing facility revealed since 2020 and is the second of four new domestic sites the company plans to unveil this year. The facility is projected to become operational within five years and will incorporate cutting-edge technologies such as machine learning, AI, and advanced data analytics to optimize operations and ensure high-quality output.
A key focus of the Houston plant will be scaling up production of orforglipron, Lilly’s innovative oral GLP-1 receptor agonist currently in development for obesity treatment. The company anticipates submitting the drug for global regulatory approval by the end of 2025. Beyond enhancing supply chain security, the project is expected to create 615 high-wage permanent jobs in engineering, science, operations, and lab roles, while generating an additional 4,000 construction jobs during the build-out phase.
“Our new Houston site will enhance Lilly’s ability to manufacture orforglipron at scale and, if approved, help fulfill the medicine’s potential as a metabolic health treatment for tens of millions of people worldwide who prefer the ease of a pill that can be taken without food and water restrictions,” said David A. Ricks, Lilly’s chair and CEO. “This significant U.S. investment and onshoring of our API production capabilities will ensure faster, more secure access to orforglipron and to other life-changing medicines of the future.”
Texas Governor Greg Abbott praised the investment, highlighting its economic impact. “Texas is the economic engine of America because we foster innovation and empower businesses to succeed,” Abbott stated. “Texas is proud to welcome Lilly to Houston as they make one of the largest pharmaceutical manufacturing investments in our nation’s history and provide good, high-paying jobs to hardworking Texans.”
Edgardo Hernandez, Lilly’s executive vice president and president of Manufacturing Operations, emphasized the site’s innovative edge: “With this new chemical synthesis facility, we are expanding our vital advanced pharmaceutical capabilities in the U.S. and setting a new global benchmark for innovation and technical leadership in our industry.”
Lilly selected the Generation Park location after evaluating over 300 potential sites, prioritizing factors like workforce talent, incentives, infrastructure, and business climate. The company estimates that its spending in the region could stimulate up to four times the economic activity through related sectors such as supply chains and retail.
Lilly’s Massive Manufacturing Expansion
This Houston project is part of Lilly’s strategy to bolster U.S.-based production amid growing demand for its therapies. Since 2020, the company has committed over $50 billion to new and expanded manufacturing facilities in the United States, more than doubling its initial investments from that period. Prior commitments between 2020 and 2024 totaled $23 billion, with an additional $27 billion earmarked for the four new sites announced in 2025.
Just last week, on September 16, 2025, Lilly revealed the first of these new facilities: a $5 billion plant in Goochland County, Virginia, west of Richmond, aimed at enhancing production capacity. Two more U.S. locations are slated for announcement later this year.
Among earlier U.S. investments:
- In May 2024, Lilly boosted its commitment to a Lebanon, Indiana, site to $9 billion for API production, focusing on medicines like tirzepatide for diabetes and obesity.
- In October 2024, the company announced a $4.5 billion “Lilly Medicine Foundry” also in Lebanon, Indiana, dedicated to innovating drug production methods and supplying clinical trial materials.
- In December 2024, Lilly expanded a recently acquired facility in Kenosha County, Wisconsin, with a $3 billion investment, bringing the total there to $4 billion for injectable medicines and device assembly.
- Other key sites include a $1 billion facility in Concord, North Carolina (announced in 2021 for parenteral products) and expansions at Research Triangle Park, North Carolina (initially $470 million in 2020, with further investments).
These expansions reflect Lilly’s response to surging global demand for its portfolio, including breakthrough treatments for diabetes, obesity, Alzheimer’s, immune disorders, and cancer. By prioritizing domestic manufacturing, the company aims to reduce supply chain vulnerabilities and accelerate delivery of therapies to patients worldwide.
