LG Chem Takes Leap as Top Cathode Supplier in the U.S. with Groundbreaking of Tennessee Plant

• LG Chem commemorates the groundbreaking for America's largest cathode plant in Tennessee, U.S., featuring 60,000-ton annual production capacity
• The Tennessee plant supports U.S. Inflation Reduction Act (IRA) compliance by securing a supply chain from FTA nations for EV tax credit eligibility
• Plant boasts its world-class productivity with smart factories and eco-friendly supply chain through cooperation with recycling partners

SEOUL, South Korea, Dec. 19, 2023 /PRNewswire/ -- LG Chem has commenced the construction of a cathode plant in the U.S., intending to establish a production hub for the global battery material market. The facility, located in Montgomery County, Clarksville, Tennessee, will locally produce cathode materials optimized for North American electric vehicles (EVs) and collaborate with key partners from development to supply chain.

On December 19, local time, LG Chem held the groundbreaking ceremony for its cathode plant in Tennessee. The event was attended by guests including Tennessee Governor Bill Lee, Commissioner Stuart McWhorter, Senator Marsha Blackburn, Korean Ambassador to the United States Cho Hyun-dong, Clarksville City Mayor Joe Pitts and Montgomery County Mayor Wes Golden. Key attendees from LG Chem were CEO Shin Hak-cheol, President of Advanced Materials Company Nam Chul and Head of Battery Materials Business Unit Lee Hyang-mok.

"With the Tennessee cathode material plant as the center, LG Chem will undoubtedly leap to become the top cathode material supplier in North America," CEO Shin Hak-cheol commented. "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's pro-business environment and skilled workforce provide global companies with the tools they need to succeed," said Tennessee Governor Bill Lee. "I congratulate LG Chem on today's significant milestone and thank the company for its investment in Tennessee."

"Tennessee strives to be the premier destination for the next generation of innovation and high-quality jobs and because of companies like LG Chem, we are one step closer to that goal," said Stuart C. McWhorter, Commissioner of the Tennessee Department of Economic and Community Development. "I look forward to seeing this impressive facility in the years ahead."

LG Chem will invest around KRW 2 trillion (USD 1.6 billion) in the first phase to build a cathode plant with an annual capacity of 60,000 tons on a 1.7 million square meter site in Clarksville, Tennessee. The plant is expected to be the largest cathode material facility in the United States, capable of producing cathode materials for approximately 600,000 high-performance pure electric vehicles with a range of 500 km annually.

Starting from 2026, the Tennessee cathode plant will mass-produce NCMA (Nickel, Cobalt, Manganese, Aluminum) cathode materials. LG Chem plans to diversify its product portfolio through future-generation cathode material products and expand production capacity in response to increasing demand. LG Chem previously signed a comprehensive agreement for the long-term supply of 950,000 tons of cathode materials with General Motors (GM) last year and a North American cathode material supply contract worth KRW 2.9 trillion (USD 2.5 billion) with Toyota in October this year.

Tennessee offers excellent geographical accessibility for customer deliveries and raw material imports. LG Chem plans to use the Tennessee facility as a base for communication with customers, producing customized cathode materials optimized for North American electric vehicles from the development stage.

Through the plant, LG Chem aims to actively respond to the Inflation Reduction Act (IRA) of the Biden Administration, helping customers meet EV tax credits criteria. The Tennessee plant will secure a reliable supply chain for minerals and precursors from nations with U.S. free trade agreements (FTAs). For instance, it will utilize precursors from Ulsan by Korea Precursor Company (KPC), a joint venture of LG Chem and Korea Zinc.

LG Chem will enhance the manufacturing competitiveness of the Tennessee plant by advancing its engineering technology of the calcination process, securing the world's highest-level annual production capacity of 10,000 tons per line. LG Chem will also apply smart factory technology to the Tennessee plant, automating the entire production process and establishing a quality analysis and control system.

In addition, LG Chem is discussing collaboration with U.S. battery recycling companies regarding material supply cooperation. The company plans to operate the plant with 100% renewable energy, including solar and hydro power, in collaboration with local power supply companies.

About LG Chem
LG Chem is a leading global chemical company with a diversified business portfolio in the key areas of petrochemicals, advanced materials, and life sciences. The company manufactures a wide range of products from high-value added petrochemicals to renewable plastics, specializing in cutting-edge electronic and battery materials, as well as drugs and vaccines to deliver differentiated solutions for its customers. LG Chem is committed to reaching carbon-neutral growth by 2030 and net-zero emissions by 2050 by managing the impacts of climate change and making positive contributions to society through renewable energy and responsible supply chains. Headquartered in Seoul, Korea, LG Chem has multiple operation sites worldwide and generated consolidated revenue of KRW 51.9 trillion (USD 42.1 billion) in 2022. For more information, please visit www.lgchem.com.

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SOURCE LG Chem