In an effort to address the growing demand for US electric vehicle materials, LG Chem has announced that it will invest over $3 billion to erect a battery cathode factory in Tennessee, according to InsideEVs.
Why the United States?
A Memorandum of Understanding (MOU) between the largest Korean chemical company and the state of Tennessee was recently inked. According to the official press release, the Inflation Reduction Act had a significant role in locating the facility in the United States.
“For LG Chem, Tennessee was the best choice due to its proximity to key customers, ease of transporting raw materials and active cooperation of the state and local governments. The Tennessee facility allows LG Chem to proactively address the changing dynamics of the global battery material market and with legislation such as the Inflation Reduction Act (IRA). In addition to the benefits realized by investing in manufacturing on US soil, LG Chem envisions the Tennessee site being the supply chain hub where material and recycling partners work together to supply global customers.”
Projected production capacity
LG Chem is expected to generate 120,000 tons of cathode material yearly by 2027 with the construction of the battery cathode plant. Furthermore, this capacity is projected to be sufficient for 1.2 million electric vehicles annually.
Construction might start as soon as the first quarter of 2023. However, mass production is set to begin in the second half of 2025.
As per the report, the project will empower LG Energy Solution and its partnership with GM, Stellantis, and Honda to produce Li-ion battery cells in North America.
LG Chem’s NCMA chemistry
Remarkably, the nickel, cobalt, manganese, and aluminum (NCMA) chemistry will be used to manufacture the cathodes at LG Chem’s new plant. It is worth noting that it is also utilized in GM’s Ultium Cells joint venture.
According to LG Chem, NCMA is planned for use in next-generation EVs due to its enhanced battery stability and capacity. Moreover, the capacity to generate over 10,000 tons of cathode material per line will be applied to this project, along with the company’s cutting-edge production technologies.
Shin Hak-Cheol, CEO of LG Chem, stated:
“The new cathode manufacturing facility in Tennessee brings us one step closer to becoming the world’s best battery materials manufacturer and fulfilling our corporate vision to become a top global science company. This site will be the North American manufacturing center of excellence for the cathode supply chain and lead to the creation of many well-paying jobs, contributing to the local economy in Clarksville.”
