■ LG Chem signs MOU to invest more than USD 3 billion to build a cathode manufacturing facility in Clarksville, Tennessee, the largest in the US
■ Target annual output of 120,000 tons of cathode material by 2027 which is enough to power 1.2 million high-performance electric vehicles
■ Facility that is key to the company’s sustainable battery material business to meet the increasing global demand for electric vehicles, operating on 100% renewable energy and intelligent manufacturing technology for the most good quality management and manufacturing processes.
SEOUL, Nov. 22, 2022 – LG Chem announced today the signing of a memorandum of understanding (MOU) with the state of Tennessee to build a new cathode manufacturing facility in Clarksville with an investment of over USD 3 billion.
The new plant in Clarksville, Tennessee is the largest of its kind in the United States, covering 420 acres with a production target of 120,000 tons of cathode material per year by 2027 to power batteries in the 1.2 million pure electric vehicles 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 starting in the second half of 2025. The Tennessee site plays a critical role in LG Chem’s strategy to expand its battery materials business including cathode material quadrupled from KRW 5 trillion in 2022 to KRW 20 trillion in 2027.
The signing ceremony was attended by Tennessee Governor Bill Lee, Department of Economic and Community Development Commissioner Stuart McWhorter and LG Chem CEO Shin Hak-Cheol, among others.
For LG Chem, Tennessee is the best choice because of its proximity to important customers, ease of transportation of raw materials and active cooperation with state and local governments. The Tennessee facility allows LG Chem to proactively respond to the changing dynamics of the global battery material market and with legislation such as the Inflation Reduction Act (IRA). In addition to the benefits realized by investing in manufacturing in the US, LG Chem envisions the Tennessee site as a supply chain hub where material and recycling partners work together to supply global customers.
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 durability. NCMA cathode materials are one of the most critical components for determining battery capacity and life in electric vehicles. The Tennessee 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 highest in the industry. LG Chem applied this technology for the first time to its fourth cathode manufacturing site in Cheongju, South Korea with great success. The company also plans to implement smart factory technology in Tennessee to automate the entire production process and establish a quality analysis and control system that will be the basis for all other cathode plants in the world.
The new facility was designed with the environment and the future needs of clean energy in mind. LG Chem will partner with electricity suppliers in Tennessee to meet the demands of customers, including battery and electric vehicle manufacturers, for additional sources of energy. The operation of the new facility will rely entirely on renewable energy provided by solar and hydroelectric power.
“LG Chem’s decision to invest USD 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 Tennessee Governor Lee. “I thank this company for creating more than 850 new jobs to provide opportunity for Tennesseans throughout Montgomery County.”
Commissioner McWhorter said, “This is a huge win for Tennessee and Montgomery County. LG Chem’s decision to locate its new cathode manufacturing facility in Clarksville underscores Tennessee’s growing profile as a hub for US and global companies. While we continue our efforts to attract companies in the automotive industry, we are focused on supporting companies that are growing Tennessee’s presence in the EV space. I appreciate LG Chem for its substantial investment in Clarksville and look forward to building a successful partnership with the company for years to come.”
“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 be a leading company in world science,” said CEO Shin of LG Chem. “This site is the North American manufacturing center of excellence for the cathode supply chain and will lead to the creation of many good-paying jobs, which will contribute to the local economy in Clarksville.”
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