LG Chem has announced it will invest $3.2 billion to build a battery cathode factory in Montgomery County, Tennessee. When built it will be the largest facility of its kind in the US and will have a target annual output of 120,000 tons of cathode material by 2027.
In announcing the signing of the memorandum of understanding with the state of Tennessee, LG Chem says they picked Clarksville, Tennessee as the location for the facility “due to its proximity to key customers, ease of transporting raw materials and active cooperation of the state and local governments.”
Construction is expected to begin in the first quarter of 2023, and LG Chem expects to begin mass production of cathode materials by the second half of 2025. The annual output will be enough to power 1.2 million battery electric vehicles (BEVs) with a range of 310 miles (500km).
“The new facility will produce advanced NCMA cathode materials containing nickel, cobalt, manganese and aluminum for next-generation EV batteries with improved battery capacity and stability,” LG Chem explained.
The facility will be a boon for the local economy with Tennessee Gov. Bill Lee calling it the “largest single foreign-direct investment in the state’s history.” More than 850 jobs will be added in the area when the plant is up and running.
“LG Chem’s decision to invest $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. I thank this company for creating more than 850 new jobs to provide opportunity to Tennesseans across Montgomery County,” Lee said.
LG Chem’s Tennessee plant will feature the company’s most advanced production technology and will have the ability to produce more than 10,000 tons of cathode material per line. This technology has already been applied at its fourth cathode manufacturing site in Cheongju, South Korea.