South Korean company initially will use virgin materials to produce EV battery metals in Tennessee but says it will seek out recycled content in the future.
LG Chem has started construction of a cathode plant in Tennessee, with the South Korea-based firm saying it intends to establish a production hub there for the battery materials market in the United States.
The Clarksville, Tennessee, facility, will produce cathode materials for use in North American-made electric vehicles (EVs).
While the plant initially will convert mined materials into cathode, LG Chem is discussing collaboration with U.S. battery recycling companies regarding material supply cooperation.
The company also plans to operate the Tennessee plant with “100 percent-renewable energy,” including solar and hydropower, in collaboration with local power supply companies.
“With the Tennessee cathode material plant as the center, LG Chem will undoubtedly leap to become the top cathode material supplier in North America,” LG Chem CEO Shin Hak-cheol says. “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 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,” says Stuart C. McWhorter, commissioner of the Tennessee Department of Economic and Community Development.
LG Chem will invest around $1.6 billion to build the first phase of a plant with an annual capacity of 60,000 tons of cathode material. “The plant is expected to be the largest cathode material facility in the U.S., capable of producing cathode materials for approximately 600,000 high-performance pure EVs with a range of 500 kilometers (310 miles) annually,” according to LG Chem.
Starting in 2026, the Tennessee cathode plant will mass-produce NCMA (nickel, cobalt, manganese, aluminum) cathode materials. LG Chem says it will be able to diversify its product portfolio as the EV battery market evolves and will be able to expand production capacity in response to increasing demand.
The company signed an 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 $2.5 billion with Toyota this October.
Whether relying on virgin materials initially or recycled batteries in the future, LG Chem says the plant is a response to the Inflation Reduction Act, “helping customers meet EV tax credits criteria.”
Initially, the Tennessee plant will secure a reliable supply chain for minerals and precursors from nations with U.S. free trade agreements, LG Chem says, including the use of precursors from Ulsan by Korea Precursor Co., a joint venture of LG Chem and Korea Zinc.
LG Chem eyes a recycling-related future for its battery materials plant – Recycling Today
