On November 22, South Korea-based LG Chem declared that it would make a US$3 billion investment to construct a battery cathode factory in Tennessee to suffice the emerging demand for electric vehicle (EV) components.
Early in August, a US law was passed making automakers, and battery suppliers solely depend on China for sourcing at a cost disadvantage. Since then, this has been the first major South Korean investment in the United States to enhance the electric vehicle (EV) market.
The company claimed that the unit will produce an estimated 120,000 tonnes of cathode materials by 2027, ample to run almost 1.2 million electric vehicles. The new plant will produce batteries with nickel, cobalt, manganese and aluminium (NCMA) chemistry. The NCMA battery consists of almost 90 per cent nickel that, permits manufacturers to decrease their dependency on the expensive material cobalt. Moreover, the use of aluminium in making batteries is continuously hyped due to its cost-effectiveness and non-reactivity.
LG Chem has published a statement that mass manufacturing will begin in the second half of 2025, generating over 850 open job positions. According to sources, the company's shares jumped up 1.9 per cent, outdoing a 0.3 per cent drop in the broader market.
The organisation has also stated that it is on the way to making a truce with recycling and mining firms to properly support its customers so that the new law's criteria, the Inflation Reduction Act, can be matched. LG Chem is expected to supply cathode materials to Ultium Cells, a battery joint venture between General Motors (GM) and LG Chem's subsidiary LG Energy Solution (LGES).
LGES already provides batteries to Ford, Tesla and Hyundai Motors, only last month augmenting its revenue to 25 trillion won (US$25.5 billion) from 22 trillion won, engaging in new projects assigned by automobile companies.
General Motors has assured that it would apply nickel, cobalt, manganese and aluminium (NCMA) battery cathodes from LG Chem to produce a range of EVs using Ultium-branded batteries.
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