By: ICN Bureau
Last updated : December 20, 2023 7:48 pm
The Tennessee plant with 60,000-ton annual production capacity supports U.S. Inflation Reduction Act (IRA) compliance by securing a supply chain from FTA nations for EV tax credit eligibility
LG Chem has commenced the construction of a cathode plant in the U.S., intending to establish a production hub for the global battery material market. The facility, located in Montgomery County, Clarksville, Tennessee, will locally produce cathode materials optimized for North American electric vehicles (EVs) and collaborate with key partners from development to supply chain.
Today, LG Chem held the groundbreaking ceremony for its cathode plant in Tennessee. The event was attended by guests including Tennessee Governor Bill Lee, Commissioner Stuart McWhorter, Senator Marsha Blackburn, Korean Ambassador to the United States Cho Hyun-dong, Clarksville City Mayor Joe Pitts and Montgomery County Mayor Wes Golden. Key attendees from LG Chem were CEO Shin Hak-cheol, President of Advanced Materials Company Nam Chul and Head of Battery Materials Business Unit Lee Hyang-mok.
“With the Tennessee cathode material plant as the center, LG Chem will undoubtedly leap to become the top cathode material supplier in North America,” Shin Hak-cheol, CEO, LG Chem, said.
“LG Chem will execute the vision to become the world's leading comprehensive battery material company, establishing a stable supply chain resilient to any environment.”
“Tennessee’s pro-business environment and skilled workforce provide global companies with the tools they need to succeed,” said Tennessee Governor Bill Lee. “I congratulate LG Chem on today’s significant milestone and thank the company for its investment in Tennessee.”
“Tennessee strives to be the premier destination for the next generation of innovation and high-quality jobs and because of companies like LG Chem, we are one step closer to that goal,” said Stuart C. McWhorter, Commissioner of the Tennessee Department of Economic and Community Development. “I look forward to seeing this impressive facility in the years ahead.”
LG Chem will invest around US$ 1.6 billion in the first phase to build a cathode plant with an annual capacity of 60,000 tons on a 1.7 million square meter site in Clarksville, Tennessee. The plant is expected to be the largest cathode material facility in the United States, capable of producing cathode materials for approximately 600,000 high-performance pure electric vehicles with a range of 500 km annually.
Starting from 2026, the Tennessee cathode plant will mass-produce NCMA (Nickel, Cobalt, Manganese, Aluminum) cathode materials.
LG Chem plans to diversify its product portfolio through future-generation cathode material products and expand production capacity in response to increasing demand. LG Chem previously signed a comprehensive agreement for the long-term supply of 950,000 tons of cathode materials with General Motors (GM) last year and a North American cathode material supply contract worth US$ 2.5 billion with Toyota in October this year.