LG Chem to invest $3 billion in US cathode plant
LG Chem has signed a memorandum of understanding (MOU) with the state of Tennessee to establish a new cathode manufacturing facility in Clarksville with an investment of more than USD 3 billion.
Construction of the plant will begin in the first quarter of next year with mass production to start in the second half of 2025. The Tennessee site will play a critical role in LG Chem’s strategy to increase its battery materials business including cathode material fourfold from KRW 5 trillion in 2022 to KRW 20 trillion by 2027.
The company says that the new plant in Clarksville, Tennessee will be the largest of its kind in the United States, covering 420 acres with a production target of 120,000 tons of cathode material annually by 2027 – which will power batteries in 1.2 million pure electric vehicles with a range of 310 miles (500 km) per charge.
The new facility will produce advanced NCMA cathode materials containing nickel, cobalt, manganese and aluminum for next-gen EV batteries. LG Chem says in a press release that it plans to implement its smart factory technology in Tennessee to automate the entire production process and establish a quality analysis and control system that will be the benchmark for all other cathode plants in the world.
“LG Chem’s decision to invest USD 3.2 billion in Clarksville is a testament to Tennessee’s unmatched business climate, skilled workforce and position as a leader in the automotive industry,” says Tennessee Governor Lee. “I thank this company for creating more than 850 new jobs to provide opportunity to Tennesseans across Montgomery County.”