Eli Lilly to Invest $6.5 Billion in New API Manufacturing Facility at Houston’s Generation Park
In a historic investment for the Houston region and the U.S. pharmaceutical industry, Eli Lilly and Company has announced plans to build a $6.5 billion advanced manufacturing facility at Generation Park in Harris County, Texas. The 1 million-square-foot site will serve as a major hub for the production of active pharmaceutical ingredients (APIs), with a focus on next-generation small molecule synthetic medicines in areas including obesity, cardiometabolic health, oncology, immunology, and neuroscience.
This groundbreaking project is Lilly’s eighth U.S. manufacturing facility announced since 2020, and the second of four new sites to be revealed this year as part of the company’s national manufacturing expansion.
Job Creation and Economic Growth
The project is expected to deliver a significant economic boost to the Houston area and beyond:
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4,615 jobs total: including 615 permanent high-wage jobs for engineers, scientists, operations staff, and lab technicians, and 4,000 construction jobs during the build phase.
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$5.5 million Texas Enterprise Fund (TEF) grant awarded to Lilly.
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Approved under the Texas Jobs, Energy, Technology, and Innovation (JETI) incentive program.
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Local economic impact multiplier: For every $1 spent by Lilly, an estimated $4 will be generated in local economic activity.
“This $6.5 billion facility will not only bolster Houston's economy—it will boost our life sciences sector and help cement Texas as a global leader in healthcare innovation,” said Governor Greg Abbott, who joined Lilly executives and local leaders at a press conference announcing the project.
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Strategic U.S. Manufacturing for a New Generation of Medicines
The Houston facility will be one of the primary production sites for orforglipron, Lilly’s first oral GLP-1 receptor agonist—a small molecule drug for obesity treatment expected to be submitted to regulatory agencies by the end of 2025.
“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,” said David A. Ricks, Lilly’s Chair and CEO.
In addition to supporting orforglipron, the facility will help bring a range of pipeline therapies to market more quickly and securely—reducing U.S. dependency on foreign production and ensuring resilient, domestic supply chains.
Location Matters: Why Houston?
Generation Park—a rapidly developing business hub in the Lake Houston area northeast of the city—was chosen from over 300 sites due to its:
- Access to utilities and transportation
- Proximity to skilled labor and educational institutions
- Favorable regulatory and business environment
- Strong local partnerships and workforce pipeline
The Greater Houston Partnership, Harris County officials, McCord Development, San Jacinto College, and others played key roles in aligning incentives, infrastructure, and educational support to land the deal.
“This is a transformative moment for the Houston region,” said Steve Kean, President and CEO of the Greater Houston Partnership. “Lilly’s decision to build one of the largest for-profit life sciences projects in Texas history confirms Houston’s growing global role in biomedical innovation and advanced manufacturing.”
A Long-Term Commitment to Innovation, Education, and Community
Lilly also announced plans to collaborate with local universities and invest in education and workforce development across Texas to ensure a steady stream of qualified talent in the coming years.
Advanced technologies—including AI, machine learning, digital automation, and integrated data analytics—will be embedded throughout the facility to ensure safe, efficient, and scalable medicine production.
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Sustainability is also a core component of the project. Lilly emphasized its commitment to environmental stewardship, responsible resource management, and community strengthening in Harris County.
“Lilly’s decision to invest more than $6.5 billion in Harris County is a powerful testament to the strength of our community and its ability to support lifesaving work,” said Harris County Commissioner Rodney Ellis.
Local Voices, Regional Impact
The ripple effects of this announcement will extend into Houston-area schools, neighborhoods, and small businesses.
“Sheldon ISD is proud to welcome Lilly to our community,” said Superintendent Dr. Demetrius McCall, whose district serves the area around Generation Park. “Together, we will empower our students with the skills and experiences they need to thrive in a global workforce.”
Houston Mayor John Whitmire, Congresswoman Sylvia Garcia, and Rep. Harold Dutton joined the announcement alongside dozens of community and industry leaders—highlighting the bipartisan, cross-sector collaboration required to bring a project of this scale to Texas.
What’s Next?
Construction on the Generation Park facility is expected to begin soon, with the site projected to become operational within five years. Lilly’s two remaining U.S. manufacturing site locations will be announced later this year.
As one of the most ambitious life sciences investments in U.S. history, this project cements Houston’s role as a national leader in biomedical innovation—and offers a blueprint for the future of American medicine manufacturing.
Tiffany Krenek has been on the My Neighborhood News team since August 2021. She is passionate about curating and sharing content that enriches the lives of our readers in a personal, meaningful way. A loving mother and wife, Tiffany and her family live in the West Houston/Cypress region.
