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LG Chem Ltd. will spend at least $3 billion to build its first US cathode plant in Tennessee in response to the growing demand for electric vehicle (EV) components.
The cathode manufacturing facility will be capable of producing 120,000 tons a year by 2027, which would be enough to power 1.2 million pure EVs with a range of 500 kilometers per charge.
The construction will start in the first quarter of next year on a property stretching 1.7 million square meters. The plant will go into operation at the end of 2025.
According to LG Chem CEO Shin Hak-cheol, the cathode manufacturing facility brings them one step closer to becoming the world’s best battery materials manufacturer and fulfilling their corporate vision to become a top global science company.
The Inflation Reduction Act will require EV batteries to be made with higher portions of minerals processed or mined in the US, or countries with free trade pacts with the US.
LG Chem said it aims to boost its sales in the battery materials segment by fourfold to 20 trillion won by 2027 from 5 trillion won in 2022.
