LG Chem, the mother or father firm of electrical automobile (EV) battery maker LG Power Answer, stated on Tuesday that it’ll spend $3.2 billion to construct a cathode manufacturing plant in Tennessee.
The plant at Clarksville is aimed to have, by 2027, a yearly output of 120,000 tones of cathode, arguably a very powerful materials used within the manufacturing of an EV battery that determines its efficiency and value.
LG Chem stated the brand new plant would be the largest of its type within the US, taking on 420 acres of house. Building will begin early subsequent yr with mass manufacturing slated to start in 2025.
Tennessee was your best option as a result of its proximity to key prospects, the corporate stated. Although LG Chem did not formally say so, it’s possible constructing the plant to service its subsidiary LG Power Answer.
Tennessee is the place Ultium Cells, the battery three way partnership between LG Power Answer and Normal Motors, is constructing its EV battery manufacturing plant in Spring Hill. The enterprise can be constructing an EV battery manufacturing plant in Lordstown, Ohio.
LG Power Answer additionally introduced in August that it’ll kind a three way partnership with Honda to construct an EV battery manufacturing plant within the US. The pair are planning to spend $4.Four billion on the mission.
The pandemic has elevated worries over potential provide chain disruption whereas the costs of uncooked materials comparable to nickel utilized in EV batteries has gone up lately. The US has additionally introduced varied insurance policies to construct its personal provide chain domestically for merchandise comparable to chips and batteries. Compatriot EV battery maker SK Innovation can be constructing a battery manufacturing plant in Tennessee with Ford. It’s also planning to construct a plant by itself in Georgia.
The Tennessee facility will enable LG Chem to proactively tackle the altering dynamics of the worldwide battery materials market and with laws such because the Inflation Discount Act, the South Korean chemical big stated. The plant will manufacture superior NCMA cathode supplies the corporate stated. NCMA means the cathode is comprised of nickel, cobalt, and manganese in addition to aluminum.
Cathode makers like LG Chem are trying to extend the quantity of nickel used to extend the power density of EV batteries. LG Power Answer is the world’s second-largest EV battery maker after China’s CATL and provides batteries to US automotive makers Tesla and Normal Motors and different auto giants.
In Might, LG Power Answer additionally introduced that it’ll spend $4.1 billion with automotive maker Stellantis to construct a battery manufacturing plant in Ontario, Canada.
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