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LG Chem officials last week announced the company’s plans to invest approximately $3.2 billion to establish a new cathode manufacturing facility in Clarksville.
This factory will support the U.S. electric vehicle battery value chain
LG Chem’s expected investment of approximately $3.2 billion will be the largest single foreign direct investment announced in Tennessee’s history. The project is expected to create 860 new jobs in Montgomery County.
The Clarksville facility will be the largest of its kind in the U.S. and will produce approximately 120,000 tons of cathode material per year by 2027, which will power 1.2 million electric vehicles with a range of 310 miles on a single charge. That’s enough to power a car battery.
Current plans call for a state-of-the-art facility to be built on 420 acres at the Allensworth site in Clarksville. Construction is expected to begin in the first quarter of 2023, and the factory is expected to begin production by the second half of 2025. Once operational, the facility will produce cathode material, one of the most important materials in the production of electric vehicle batteries.
The Tennessee plant will expand LG Chem’s battery materials business by producing advanced NCMA cathode materials containing nickel, cobalt, manganese and aluminum for next-generation EV batteries with improved battery capacity and stability. It will play an important role in strategy.
“With our new cathode manufacturing facility in Tennessee, we are one step closer to realizing our corporate vision of becoming the world’s best battery materials manufacturer and the world’s top scientific company,” said Shin Hak-chul, CEO of LG Chem. ” he said. It will become North America’s preeminent manufacturing hub in the cathode supply chain, creating many good-paying jobs and contributing to Clarksville’s local economy. ”
In addition, the Clarksville facility will feature LG Chem’s most advanced production technology, including an industry-high capacity to produce more than 10,000 tons of cathode material per line. LG Chem also plans to bring its smart factory technology to Tennessee, automate the entire production process, and establish a quality analysis and control system that will become a benchmark for all other cathode factories in the world.
The new facility will be designed with the future needs of the environment and clean energy in mind. LG Chem will work with a Tennessee power company to meet the demands of customers such as battery manufacturers and electric vehicle manufacturers seeking more renewable energy sources. The operation of the new facility will rely entirely on renewable energy from solar and hydroelectric power.
Founded in 1947 and headquartered in Seoul, South Korea, LG Chem is a leading chemistry and science-driven company focused on transitioning to a more sustainable future. LG Chem has approximately 19,000 employees in more than 50 business locations around the world, and its sales in 2021 exceeded $37 billion.
South Korea is one of Tennessee’s top 10 countries for foreign direct investment. There are approximately 20 Korean companies in the state that have invested $2.3 billion and employ more than 3,500 people. LG Chem’s $3.2 billion investment is more than double the investment by a South Korean-based company.
LG Chem’s significant investments and job creation are contributing to continued growth in electric vehicle manufacturing in Tennessee. Since 2017, companies have committed to creating more than 11,000 new jobs and investing $12.7 billion in the state through EV-related projects. Additionally, more than 180,000 electric vehicles have been produced in Tennessee since 2013, ranking the state No. 1 in the Southeast for electric vehicle manufacturing.
“LG Chem’s decision to locate its new cathode manufacturing facility in Clarksville confirms Tennessee’s growing profile as a hub for U.S. and global companies,” said TNECD Commissioner Stuart McWhorter. Stated. About supporting companies that are increasing Tennessee’s presence in the EV field. We are grateful to LG Chem for their significant investment in Clarksville and look forward to building a successful partnership with them in the years to come. ”
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