CLARKSVILLE, TN (CLARKSVILLE TODAY) – LG Chem announced today that it will build a $3.2 billion cathode manufacturing plant in Clarksville, creating 860 new jobs, with about 200 of those paying more than $ 100,000 per year.
This is the largest announced foreign direct investment in Tennessee history.
The plant, which will produce an important component for electric vehicle batteries, is the largest of its kind in the United States, covering 420 hectares with a production target of 120,000 tons of cathode material per year in 2027, according to the announcement made by LG Chem, a company based in South Korea.
That’s enough cathode material each year to power the batteries of 1.2 million pure electric vehicles (EVs) with a range of 310 miles per charge. Construction of the plant will begin in the first quarter of 2023, with mass production starting in the second half of 2025.
“LG Chem’s decision to invest $3.2 billion in Clarksville is a testament to Tennessee’s unparalleled business climate, skilled workforce and position as a leader in the automotive industry,” said Gov. Bill Lee on the announcement. “I thank this company for creating more than 850 new jobs to provide opportunity for Tennesseans throughout Montgomery County.”
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At $3.2 billion, LG Chem’s investment is nearly three times that of Hemlock Semiconductor’s $1.2 billion, announced in 2008.
This is the third factory in the EV battery sector for Clarksville that has been announced in recent years, with previous announcements from Microvast of its two EV battery plants in development.
“Montgomery County, Tennessee is poised and ready for the electric vehicle industry,” said County Mayor Wes Golden. “This is the largest investment Montgomery County has ever made and we welcome this opportunity. Thank you to those who worked so hard in front of and behind the scenes to make this a reality for Middle Tennessee and our community. Bringing in LG Chem is a deliberate effort on the part of state and local economic development councils to bring high quality jobs to Montgomery County.
High number of high paying jobs
The plant will create 860 jobs, with a starting salary of $24 an hour, according to Clarksville-Montgomery County Economic Development Council officials. About 200 of those jobs will pay more than $100,000 a year, the EDC told Clarksville Now.
The jobs will include production positions, plus office/administrative and management roles, EDC said.
“This project will change our community!” said Shea Hopkins, vice president of Industrial Development, Clarksville-Montgomery County EDC. “This brings more high-skill, high-paying jobs to our area. The IDB is also extremely pleased that LG Chem is committed to shaping the future of the Middle Tennessee region by investing in diversity, equity, inclusion and meaningful community engagement.
Salary ranges are especially helpful for soldiers transferring from Fort Campbell and looking for higher paying positions.
“On behalf of EDC, I am happy to share that the positions that LG Chem has brought with this project announcement will increase wage opportunities for our community. This project will add diverse skills and advanced roles to produce the local workforce while providing an exciting career option for military transitions seeking a competitive salary,” said Buck Dellinger, CEO of the local EDC.
Good site for operations
Company officials held a signing ceremony this afternoon in Nashville with Lee, Department of Economic and Community Development Commissioner Stuart McWhorter and LG Chem CEO Shin Hak-Cheol, among others.
“We are grateful that LG Chem will expand its investment in Clarksville, providing a historic level of capital investment along with hundreds of new, high-paying jobs for families in our growing community, ” said Clarksville Mayor Joe Pitts. “This announcement is more good news for our community, and further confirms that Clarksville-Montgomery County is on the right track in our economic development efforts.”
For LG Chem, Tennessee was the best choice because of its proximity to key customers, ease of transportation of raw materials – the site borders a railroad line and is only one mile from the Interstate. 24 – and active cooperation from state and local governments. .
“In addition to the benefits realized by investing in US soil manufacturing, LG Chem envisions the Tennessee site as a supply chain hub where material and recycling partners work together to provide customers in the world,” the company announced.
What will they do
The new facility will produce advanced cathode materials containing nickel, cobalt, manganese and aluminum (NCMA) for next-generation EV batteries with improved battery capacity and durability. NCMA cathode materials are one of the most critical components for determining battery capacity and life in electric vehicles.
“The new facility was designed with the environment and future clean energy needs in mind. LG Chem will work with Tennessee’s electricity suppliers to meet the demands of customers, including battery manufacturers and electric car, for additional sources of energy,” said the announcement. “The operation of the new facility will rely entirely on renewable energy provided by solar and hydroelectric power.”
LG Chem and LG Electronics are both part of LG Corporation. LG Electronics announced its Clarksville plant in 2017, a $360 million smart factory that makes front-load and top-load washing machines. The facility currently employs about 1,000 workers.
About the site
For several weeks, companies have been actively recruiting on the 420-acre Allensworth Farm property in Montgomery County east of Exit 4 on Interstate 24. The property is roughly bounded by Charles Bell Road to the south, Hampton Station Road to the east and railway. northwest tracks.
The Clarksville-Montgomery County Industrial Development Board exercised its option on the property in May 2019. The property was purchased by Montgomery County last year for $18 million.
Making way for the LG Chem prospect took some changes. The company’s operations require a structure up to 200 feet tall, which is 100 feet above what is allowed under Montgomery County’s M-2 industrial zoning. Workers will operate at a maximum “habitable height” of 140 feet. The local zoning variance was approved on Nov. 10, according to Rod Streeter of Montgomery County Building and Codes.
Investment in Clarksville
Clarksville has several major industrial projects recently announced or under construction, two of which are in the EV battery sector. These include:
“An investment like this is a game changer that we don’t take lightly,” Golden said. “We will work to build lasting relationships with LG Chem and help them become successful partners within the community. Montgomery County is rich in history with a bright future ahead.
Jake Foster contributed to this report.
