Newsnomics AJAY ANGELINA reporter | The South Korean battery cell manufacturer LG Chem Ltd has
announced the investment of $3.2bn to develop the cathode materials manufacturing plant for electric vehicle (EV) batteries in Clarksville, Tennessee, United Sates on Tuesday Nov.22. The 420-acre (170-hectare) factory will be the largest of its kind targeted to manufacture 120,000 tons of cathode material per year by 2027, to
power batteries enough for 1.2 million high performance pure electric vehicles (EVs, capable of driving 500km), the company said in a news release. The Construction of the manufacturing plant is scheduled to begin in the first quarter of 2023; however, the production will start in the second half of 2025.
A rendering of LG Chem's cathode manufacturing facility to be built in Clarksville, Tennessee. (www.futurecar.com)
The Tennessee facility allows LG Chem to proactively address the changing dynamics of the global battery material market and with legislation such as the Inflation Reduction Act (IRA) signed into law in August. When the IRA takes effect, LG Chem is expected to receive tax benefits form the government of USA. In addition, LG
Chem is promoting cooperation with mineral and recycling companies in the raw material supply chain so
that global customers can meet the IRA’s electric vehicle subsidy standards.
LG Chem announces that the factory will produce NCMA cathode materials containing nickel, cobalt, manganese and aluminum for next-generation electric car batteries “with improved capacity and stability” added “the Tennessee site will play a crucial role in quadrupling its battery materials business, including cathode materials, from 5 trillion won in 2022 to 20 trillion won by 2027 (roughly from 3.6 to 14.4 billion euros).
“The new cathode manufacturing facility in Tennessee brings us one step closer to becoming the world’s best battery materials manufacturer and fulfilling our corporate vision to become a top global science company,”
expresses LG Chem CEO Shin Hak-Cheol. “This site will be the North American manufacturing center of
excellence for the cathode supply chain and lead to the creation of many well-paying jobs, contributing to
the local economy in Clarksville.”
"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," said Tennessee Governor Lee.
"I thank this company for creating more than 850 new jobs to provide opportunity to Tennesseans across
Montgomery County."
Commissioner McWhorter said, "This is a big win for Tennessee and Montgomery County. LG Chem's decision to locate its new cathode manufacturing facility in Clarksville underscores Tennessee's growing profile as a
hub for U.S. and global companies. As we continue our efforts to attract companies in the automotive
industry, we are focused on supporting companies that boost Tennessee's presence in the EV space. I appreciate LG Chem for its substantial investment in Clarksville and look forward to building a successful partnership
with the company in the years ahead."
One major national US manufacturer, General Motors (GM) signed agreement with LG Chem for the supply of cathode active material (CAM) with more than 950,000 tons of CAM from the second half of 2022 until 2030. The joint venture between GM and LG Energy Solutions is said to be sufficient for the production of about five million electric vehicles. Moreover, it was said that the two companies were discussing setting up a CAM production plant in North America by the end of 2025 possibly this referred to the now announced factory.
