LG Chem Plans To Invest $1.6M Initiates Construction Of Biggest Cathode Plant In US

South Korean firm LG Chem has embarked on the creation of an advanced cathode facility in Tennessee, which is expected to be the largest in the U.S.

What Happened: Recently, the groundbreaking ceremony for LG Chem‘s new cathode plant took place in Tennessee, as reported by Teslarati. The facility is estimated to be the biggest in the United States, producing mass quantities of NCMA (Nickel, Cobalt, Manganese, Aluminum) cathode materials.

The South Korean firm plans to invest $1.6 billion in the project’s initial phase, which will span 1.7 million square meters in Clarksville. The first phase will generate 60,000 tons of cathode material per year, with production anticipated to start by 2026.

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Tennessee’s Governor, Bill Lee, voiced his support for the project, asserting that the state’s pro-business environment would be beneficial. He welcomed LG Chem’s investment in Tennessee.

Besides, LG Chem has entered into comprehensive agreements with General Motors (NYSE:GM) and Toyota (NYSE:TM) to supply cathode material in North America. The new plant aims to assist automakers in qualifying for EV incentives under the Inflation Reduction Act.

CEO Shin Hak-cheol shared his vision for LG Chem, expressing that the new plant would position the company as North America’s leading cathode material supplier.

Why It Matters: This move comes in the wake of a growing shift towards Sodium-ion batteries (SIBs). Many South Korean battery manufacturers, including LG Chem, have begun developing SIBs due to their cost-effectiveness and abundance. Moreover, a recent Wall Street Journal analysis predicted that several EV startups might run out of cash by the end of 2024, making LG Chem’s move a timely one.

Furthermore, General Motors’ recent investment in Mitra Chem, an AI-enabled battery materials innovator, underscores the importance of advanced battery materials in the competitive EV market.

Image credits – Shutterstock

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