LG Chem Invests in Tennessee with Construction of Major Battery Materials Facility

LG Chem Ltd., headquartered in Seoul, South Korea, has officially initiated the construction of a cathode plant in the United States, marking a significant step toward establishing a global production hub for battery materials. The strategically chosen location for this facility is Montgomery County, Clarksville, Tennessee, where LG Chem aims to produce cathode materials specifically tailored for North American electric vehicles (EVs). The company plans to engage in collaborative efforts with key partners throughout the entire development and supply chain processes.

Shin Hak-cheol, the CEO, has voiced his certainty regarding the Tennessee cathode factory, declaring, "LG Chem will undoubtedly jump to the forefront as the leading cathode material provider in North America, with the Tennessee cathode material plant at its core." He further emphasized LG Chem's overarching vision to evolve into the world's leading comprehensive battery material company, ensuring the establishment of a resilient and stable supply chain capable of withstanding diverse environmental challenges.

Tennessee Governor Bill Lee lauded LG Chem's investment in the state, acknowledging the favorable business environment and skilled workforce that Tennessee provides. He congratulated LG Chem on achieving this significant milestone and thanked the company for its commitment to investing in Tennessee, contributing to the state's economic growth.

LG Chem's investment in the first phase of the Tennessee cathode plant is approximately KRW 2 trillion (USD 1.6 billion). The plant, situated on a vast 1.7 million square meter site in Clarksville, will have an annual production capacity of 60,000 tons. It is anticipated to be the largest cathode material facility in the United States, capable of supplying cathode materials for around 600,000 high-performance pure electric vehicles annually, each with a range of 500 km.

The Tennessee cathode plant is slated to commence mass production of NCMA (Nickel, Cobalt, Manganese, Aluminum) cathode materials from 2026 onward. LG Chem plans to diversify its product portfolio by introducing next-generation cathode material products and expanding production capacity to meet the growing demand in the market. Notably, LG Chem has previously secured comprehensive agreements for long-term cathode material supply with industry giants General Motors (GM) and Toyota, underlining the company's strategic positioning in the automotive sector.

The geographical accessibility of Tennessee for customer deliveries and raw material imports further enhances the plant's significance. LG Chem envisions using the facility as a strategic base for customer communication, producing customized cathode materials optimized for North American electric vehicles from the initial stages of development.

In alignment with the Inflation Reduction Act (IRA) proposed by the Biden Administration, LG Chem intends to provide active assistance to its customers in fulfilling the criteria for EV tax credits through the operations at its Tennessee facility. The facility is expected to secure a reliable supply chain for minerals and precursors from countries with U.S. FTAs. As an example, the plant will source precursors from Ulsan through Korea Precursor Company (KPC), a joint venture of LG Chem and Korea Zinc.

To bolster the manufacturing competitiveness of the Tennessee plant, LG Chem plans to advance its engineering technology in the calcination process, aiming to achieve the world's highest annual production capacity of 10,000 tons per production line. Additionally, the company intends to implement smart factory technology at the Tennessee plant, automating the entire production process and establishing a robust quality analysis and control system. Through these initiatives, LG Chem seeks to position itself at the forefront of innovation and efficiency in the rapidly evolving landscape of battery materials production.