Dow Jones Newswires: LG Chem to build $3 billion cathode plant in Tennessee

by | Nov 21, 2022 | Stock Market

LG Chem Ltd.
said Tuesday it signed an memorandum of understanding with the state of Tennessee to build a new cathode materials plant in the U.S. The South Korean chemical company, which has is expanding its electric-vehicle battery materials business globally, plans to invest more than $3 billion in new facilities to be built in Clarksville.

LG Chem aims to produce 120,000 tons of cathode materials annually from the Tennessee plant by 2027. The company said it would start construction in the first quarter of 2023 to build the new plant, where mass production could start in the second half of 2025. LG Chem expects the new plant to produce cathode materials containing nickel, cobalt, manganese and aluminum for next-generation EV batteries with improved battery capacity and stability. Tennessee Governor Bill expects LG Chem’s planned $3.2 billion investment to create more than 850 new jobs and provide opportunity to Tennesseans, according to a press release issued by LG Chem. LG Chem said it would increase its battery materials business fourfold to 20 trillion won ($14.71 billion) by 2027 from an estimated KRW5 trillion in 2022.

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