LG Chem recently broke ground on a cathode plant in Tennessee. The new facility is expected to be the largest cathode plant in the United States.
The cathode plant in Tennessee will mass produce NCMA (Nickel, Cobalt, Manganese, Aluminum) cathode materials. LG Chem plans to invest $1.6 billion on the plant’s first phase, spanning 1.7 million square meters of the site in Clarksville. The first phase will yield 60,000 tons of cathode material annually. Production is scheduled to start by 2026.
“Tennessee’s pro-business environment and skilled workforce provide global companies with the tools they need to succeed,” said Tennessee Governor Bill Lee. “I congratulate LG Chem on today’s significant milestone and thank the company for its investment in Tennessee.”
LG Chem’s cathode plant is in Montgomery County, Clarksville, Tennessee. The new cathode facility will supply materials optimized specifically for North American electric vehicles (EVs). The South Korean company partnered with key automakers in North America to develop a global material market.
LG Chem has a comprehensive agreement with General Motors for a long-term supply of 950,000 tons of cathode materials. It also has a contract with Toyota for cathode material supply in North America.
LG Chem cathode plant in TN aims to help automakers qualify for EV incentives under the Inflation Reduction Act (IRA). For instance, the company plans to secure minerals from nations with U.S. free trade agreements, a requirement under the battery guidelines of the IRA.
“With the Tennessee cathode material plant as the center, LG Chem will undoubtedly leap to become the top cathode material supplier in North America,” CEO Shin Hak-cheol commented. “LG Chem will execute the vision to become the world’s leading comprehensive battery material company, establishing a stable supply chain resilient to any environment.”