LG Chem to Build $3 Billion Battery Cathode Factory for EVs in Tennessee

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LG Chem to Build $3 Billion Battery Cathode Factory for EVs in Tennessee

LG Chem Secures Multi-Billion Dollar Deal with GM for Cathode Material Supply

LG Chem is set to establish a $3 billion battery cathode factory for electric vehicles (EVs) in Tennessee. Additionally, it has inked a long-term cathode material supply contract with General Motors (GM) worth a staggering $19 billion.

Expansion of Production Capacity and Strategic Partnerships

The new factory, situated in Clarksville, Tennessee, is a significant step towards LG Chem’s goal of increasing its battery materials business. It will produce advanced NCMA (nickel, cobalt, manganese, aluminum) cathode materials for next-gen EV batteries, contributing to improved battery capacity and stability.

LG Chem’s partnership with GM’s Ultium Cells joint venture will see it supply more than 500,000 tons of NCMA materials, powering approximately 5 million EVs. This substantial increase in production reflects LG Chem’s commitment to meeting the growing demand for EVs and sustainable transportation solutions.

Shift in Production Plans and Commitment to Environmental Sustainability

Despite delays in groundbreaking and production launch dates, LG Chem remains committed to expanding its production capacity in response to increasing demand. The Tennessee facility, expected to be operational from 2026, will create 850 jobs and serve as a vital supply chain hub for global customers, including Tesla and GM.

The utilization of LG Chem’s most advanced production technology and smart factory systems underscores its dedication to efficiency and quality in cathode material production. Furthermore, the factory’s reliance on solar and hydroelectric power aligns with LG Chem’s sustainability goals and commitment to environmental stewardship.

Driving Growth and Innovation in the EV Industry

The Tennessee factory’s strategic location, advanced technology, and collaborative partnerships position LG Chem at the forefront of innovation in the EV industry. With a focus on increasing battery materials business fourfold by 2027, LG Chem aims to play a pivotal role in shaping the future of electric transportation worldwide.

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 such as cathodes, 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.

Summarized from Source: LG Chem

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