LG Chem builds the largest cathode materials plant in the US

LG Chem has started construction of a cathode products plant in the US. The Montgomery County plant in Clarksville, Tennessee, will domestically manufacture components for batteries for North American electric cars. The facility is expected to be the largest in the US: it will be able to produce cathode materials equivalent to about 600,000 electric cars per year at a range of 500 km.

LG Chem plans to invest about 2 trillion Korean won (KRW; about 1.5 billion euros) in the first phase to build a cathode plant with a capacity of 60,000 tons per year. The start of mass production of nickel, cobalt, manganese and aluminum is planned for 2026. The plant will be powered by 100 percent renewable energy through wind and solar power in close cooperation with local electricity suppliers.

Buyers are already taken care of: LG Chem last year signed an agreement with US car giant General Motors (GM) for the long-term supply of 950,000 tons of cathode material and in October of this year KRW 2.9 trillion (a good 2.3 billion euros) to Japanese manufacturer Toyota's US plants.

“With the Tennessee facility, LG Chem will undoubtedly be the leading supplier of cathode materials in North America“, comments LG Chems CEO Shin Hak-cheol. So LG Chem continues “To become the world's leading battery products company and build a sustainable supply chain that is resilient in every aspect“.

According to LG Chem, Tennessee offers good geographic conditions for delivering to customers and importing raw materials. With the plant in the US, LG Chem is responding to the Biden administration's Inflationary Reduction Act (IRA) and helping its customers meet the criteria for tax credits, which are granted only if the electric car's value is added. Within the United States.

In addition, LG Chem is already discussing collaboration with some US-based battery recycling companies for another raw material supply.

Source: LG Chem – Press release from December 20, 2023