Indianapolis-based pharmaceutical manufacturer Eli Lilly and Co. announced Tuesday it will build a more than $6 billion manufacturing facility in Huntsville.
The site will bring 450 jobs, including engineers, scientists, operations personnel and lab technicians, Gov. Kay Ivey’s office said in a press release.
“Huntsville and our entire state have a proven legacy of innovation, and there is no better home for Lilly than right here in Alabama,” Ivey said. “Our roots in the biosciences industry run deep, and Alabama’s contributions to this burgeoning sector continue. We are proud to welcome Lilly’s new U.S. manufacturing facility, which we are thrilled is the largest initial investment in our state’s history.”
The site is one of four new facilities for the company.
“The competition for a manufacturing facility of this magnitude is extremely challenging, and this result shows Alabama’s pro-business climate, outstanding workforce and strong community support is a winning combination,” said Alabama Commerce Secretary Ellen McNair.
In its announcement, the company said the site was selected from more than 300 applications, partly based on its proximity to the HudsonAlpha Institute for Biotechnology’s established bioscience campus that supports workforce training and research. The region also offers ready access to utilities, transportation and favorable zoning and incentives.
The state used its two largest tax incentives to land Eli Lilly.
Its package includes a $23.7 million Job Credit and $85.9 million Investment Credit, the Alabama Department of Commerce told Alabama Daily News.
The Jobs Credit gives companies cash rebates on their previous year’s payroll for qualified employees The Investment Credit pertains to a company’s capital investment and can be applied to several taxes, including income. Companies can receive the incentives for up to 10 years.
Eli Lilly will also receive $45.8 million in workforce recruitment and training services from the Alabama Industrial Development and Training agency, the Department of Commerce’s worker recruitment arm. About $2.5 million of that is direct cash, the commerce said.
“Huntsville’s track record of science and innovation, supported by advanced manufacturing expertise and a skilled workforce, makes Alabama an ideal location for Lilly to expand domestic manufacturing capacity for next‑generation medicines,” said David A. Ricks, Lilly chair and CEO. “Today’s investment continues the onshoring of active pharmaceutical ingredient production, strengthening supply chain resilience and reliable access to medicines for patients in the U.S.”
The facility will produce small-molecule synthetic and peptide medicines. It will be among those that will manufacture orforglipron, Lilly’s first oral medication for the treatment of diabetes and obesity. The company expects to submit to global regulatory agencies by the end of this year.
Construction at the multi-building campus on a 260-acre site will begin in 2026, with completion slated for 2032.
“Huntsville has long been a place where innovation thrives and hard, ‘impossible’ things get done,” said Mayor Tommy Battle. “We’re proud to welcome Lilly to our community and excited to help shape the next era of breakthrough medicine.”
Editor’s note: This story was updated to include the state incentives offered the company.