South Korea’s LG Chem Ltd has recently announced its plans to invest over $3 billion to build an EV battery cathode manufacturing plant in the U.S.
The new plant will be located in Clarksville, Tennessee. It will manufacture nickel-cobalt-manganese-aluminum (NMCA) cathode materials for next-generation electric vehicle (EVs) batteries. These batteries have higher capacity and more stable performance. This plant will be the largest of its kind in the US.
“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,” stated the press release. “In addition to the benefits realized by investing in manufacturing on U.S. soil, LG Chem envisions the Tennessee site being the supply chain hub where material and recycling partners work together to supply global customers.”
Accelerate the transition to electric cars
The construction of the plant will start in the first quarter of 2023. The company is planning to launch commercial production by the end of 2025.
To meet the rising demand for U.S. electric vehicle components, the company is expected to produce up to 120,000 tons of cathode material annually by 2027. This will be enough to power batteries in 1.2 million electric vehicles with a range of 310 miles per charge.
Such a massive production will help in expediting the transition to electric cars in the U.S. and the world over.