LG Chem breaks ground of its Tennessee plant, taking the lead as a top cathode supplier in the U.S.

28 December 2023, 10:36:47

LG Chem has commenced the construction of a cathode plant in the U.S., intending to establish a production hub for the global battery material market. The facility, located in Montgomery County, Clarksville, Tennessee, will locally produce cathode materials optimized for North American electric vehicles (EVs) and collaborate with key partners from development to the supply chain.

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

Starting from 2026, the Tennessee cathode plant will mass-produce NCMA (Nickel, Cobalt, Manganese, Aluminum) cathode materials. LG Chem plans to diversify its product portfolio through future-generation cathode material products and expand production capacity in response to increasing demand. LG Chem previously signed a comprehensive agreement for the long-term supply of 950,000 tons of cathode materials with General Motors (GM) last year and a North American cathode material supply contract worth KRW 2.9 trillion (USD 2.5 billion) with Toyota in October this year.

Tennessee offers excellent geographical accessibility for customer deliveries and raw material imports. LG Chem plans to use the Tennessee facility as a base for communication with customers, producing customized cathode materials optimized for North American electric vehicles from the development stage.

Through the plant, LG Chem aims to actively respond to the Inflation Reduction Act (IRA) of the Biden Administration, helping customers meet EV tax credits criteria. The Tennessee plant will secure a reliable supply chain for minerals and precursors from nations with U.S. free trade agreements (FTAs). For instance, it will utilize precursors from Ulsan by Korea Precursor Company (KPC), a joint venture of LG Chem and Korea Zinc.

LG Chem will enhance the manufacturing competitiveness of the Tennessee plant by advancing its engineering technology of the calcination process, securing the world's highest-level annual production capacity of 10,000 tons per line. LG Chem will also apply smart factory technology to the Tennessee plant, automating the entire production process and establishing a quality analysis and control system.

In addition, LG Chem is discussing collaboration with U.S. battery recycling companies regarding material supply cooperation. The company plans to operate the plant with 100% renewable energy, including solar and hydro power, in collaboration with local power supply companies.

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