Eli Lilly announced plans on Tuesday to build a $5 billion drug manufacturing facility in Virginia. The announcement comes amid pressure from President Donald Trump to bring more drug manufacturing to the U.S. and threats to slap heavy tariffs on pharmaceuticals coming from overseas.
The new manufacturing plant will be built west of Richmond, Virginia, in Goochland County, according to a press release from the company. Eli Lilly says it expects the project to be completed in five years and claims it will bring “more than 650 new high-paying jobs to Virginia, including highly skilled engineers, scientists, operations personnel and lab technicians.”
Eli Lilly’s press release included a statement from Virginia Gov. Glenn Youngkin, who also noted the number of construction jobs that would be brought to the state.
“Lilly is one of the world’s great innovators, and I want to thank them for this significant commitment to Virginia,” said 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.”
Youngkin, a Republican, touted the benefits to the U.S. supply chain, something that was severely disrupted during the covid-19 pandemic, leading to calls to bring more drug manufacturing to the U.S.
“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,” said Yougkin.
Lilly first announced back in February that it would be investing over $27 billion into new manufacturing facilities, bringing its total investments to $50 billion since 2020. The company said Tuesday that three other U.S. manufacturing sites would be announced soon. All four sites are expected to be making pharmaceuticals within five years, according to the company.
“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, in a press release.
“With this cutting-edge site, Lilly is setting a new benchmark in bioconjugate innovation, advancing technologies that will expand what’s possible for patients,” Hernandez continued. “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.”
Trump initially threatened in July to impose tariffs of 200% on prescription drugs coming from overseas, though the number floated in August jumped around from between 150% to 250%, according to CNBC. At the time, Trump said he would start to impose that tariff in a year or a year and a half, though the president is known to move deadlines forward and backward on a whim.
Aside from trying to bring drug manufacturing to the U.S., President Trump has also attempted to press drug companies into lowering prices, though he seems to have had less luck with trying to make that happen simply by decree.
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