LG Chem to Invest $3 Billion to Build Largest Cathode Plant in US for EV Batteries

South Korea's LG Chem has announced plans to to establish a new cathode manufacturing facility in the US with an investment of more than USD 3 billion. The new plant in Clarksville, Tennessee will be the largest of its kind in the US.

It will cover 420 acres with a production target of 120,000 tons of cathode material annually by 2027 to power batteries in 1.2 million pure electric vehicles (EVs) with a range of 310 miles (500 km) per charge.

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 help LG Chem to increase its battery materials business including cathode material fourfold from KRW 5 trillion in 2022 to KRW 20 trillion by 2027.

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.

The new plant will feature LG Chem’s most advanced production technology including the ability to produce more than 10,000 tons of cathode material per line, the industry’s highest.

The company also 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.

Shin Hak-Cheol, CEO LG Chem, says: "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. 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,” adds Tennessee Governor Bill Lee. “I thank this company for creating more than 850 new jobs to provide opportunity to Tennesseans across Montgomery County.”

LG Chem says it will collaborate with power suppliers in Tennessee to respond to the demands of customers, including battery and electric vehicle manufacturers, for more renewable energy sources.

Operation of the new facility will rely completely on renewable energy provided by solar and hydroelectric power.