Dive Brief:
- LG Chem, the Seoul, South Korea-based chemical company, plans to invest $3 billion for an EV battery manufacturing facility project in Clarksville, Tennessee, according to a company press release.
- The new plant will be the largest of its kind in the U.S. and will cover 420 acres. Production targets 120,000 tons of cathode material annually by 2027, enough to power batteries in 1.2 million pure electric vehicles with a range of 310 miles per charge.
- Construction of the plant will begin in the first quarter of 2023 with mass production to start in the second half of 2025, according to the release.
Dive Insight:
Manufacturing projects, such as EV battery plants, remain in high demand in the U.S. as more companies look to take advantage of the onshoring trend.
Dodge Construction Network expects manufacturing starts to hit $51 billion in 2023. That’s largely because the CHIPS Act and Inflation Reduction Act will support abnormally high levels of activity in the sector, according to Dodge. LG Chem selected the Tennessee site due to its proximity to key customers, ease of raw material transportation and the Inflation Reduction Act, according to the release.
The South Korean company also shared plans to make the Tennessee site its hub to supply its global customers, according to the report.
The new facility will produce advanced cathode materials containing nickel, cobalt, manganese and aluminum for next-generation EV batteries with improved battery capacity and stability. The site will play a critical role in LG Chem’s strategy to both quadruple its cathode material production and increase its battery materials business, according to the release.
