Just before Christmas Eve, LG Chem Ltd announced the upcoming construction of a US$1.4bn battery cathode plant in Clarksville, located in the US state of Tennessee. The South Korean company flaunts previous constructions in the area and has vouched to play a mighty role in the area's battery-electric vehicle (BEV) revolution.
This new facility is currently in the works with a calculated annual production capacity of 60,000 tonnes of nickel, cobalt, manganese, aluminium (NCMA) battery cathodes per year. This will be sufficient to support the production of 600,000 high-performance BEVs. According to the company behind the project, this will be the largest cathode materials plant in the country upon its completion in 2026.
What will the new plant do?
This new plant is set to procure minerals and precursors from nations that have free trade agreements with the US, including suppliers based in South Korea. This initiative will allow customers to utilise the advantage of tax credits, which fall under the US Inflation Reduction Act.
Who will benefit from this new LG plant?
The plant will initially supply customised cathodes to General Motors (GM) and Toyota, with whom multi-year supply contracts were signed early this year.
Eminent personalities who graced the event
The ground-breaking ceremony for this project was attended by several dignitaries, including the Governor of Tennessee, the South Korean Ambassador to the US, the Mayor of Clarksville, and the CEO of LG Chem, along with the head of the company's Battery Materials Business Unit. This is a significant step towards promoting clean energy and supporting the automotive industry in the United States.
Honorable Mentions
At the event, LG Chem's CEO, Shin Hak-cheol, exclaimed: "With the Tennessee plant, LG Chem will become the top cathode material supplier in North America. 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."
Tennessee Governor Bill Lee supported the CEO's words saying: "Tennessee's pro-business environment and skilled workforce provide global companies with the tools they need to succeed. I congratulate LG Chem on today's significant milestone and thank the company for its investment in Tennessee."
If you wish to learn more about the entire aluminium value chain, please have a look at AL Circle's special report, Global Aluminium Industry - Key Trends to 2030.
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