South Korean battery maker LG Energy Solution Ltd.(LGES) plans to reassess its investment plan for a standalone Arizona battery factory due to the current U.S. economic environment, a company spokesperson said on Wednesday.

The spokesperson's comments on the previously announced $1.3 billion investment came after LGES said in a statement that "Given the unprecedented economic conditions and investment circumstances in the U.S., LG Energy Solution is currently reviewing various investment options."

In its statement, which didn't mention the Arizona plant, the company said no decisions have been made on the $1.3 billion plan unveiled in March.

LGES, South Korea's biggest player in the booming market for electric vehicle batteries, counts Tesla Inc, General Motors Co and Volkswagen AG among its customers. Elsewhere in the United States, LGES is building three plants with GM in Ohio, Tennessee and Michigan and plans to expand its existing factory in Michigan.

Analysts attributed the review of the Arizona investment to elevated U.S. inflation, running at its highest level in more than four decades, which could lead to rising costs for materials, construction as well as labor.

"At this point, it would be unlikely for LGES to withdraw its Arizona investment, but the company needs to reassess its profitability forecast amid rising cost due to inflation," said Cho Hyun-ryul, an analyst at Samsung Securities.