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GM Cathode Supplier LG Chem Breaks Ground On New Tennessee Plant

LG Chem has announced that construction of a new cathode plant in Tennessee is now underway. Set to be the largest cathode plant in the U.S., the new facility will produce 60,000 tons of cathode materials annually, enough to satisfy the production needs of 600,000 high-performance electric vehicles (EVs with over 300 miles of range) per year. LG Chem signed a long-term supply agreement with GM last year, agreeing to supply the automaker with 950,000 tons of cathode materials through 2030.

A GM Ultium battery pack.

The new plant is located on a 1.7-million-square-meter site in Montgomery County, Clarksville, Tennessee, and represents an investment of $1.6 billion from LG Chem. Production is scheduled to begin in 2026. The facility will focus on producing NCMA (Nickel, Cobalt, Manganese, Aluminum) cathode materials, with plans to expand the plant product range and capacity in the future.

The groundbreaking ceremony was attended by a collection of politicians and company representatives, including Tennessee Governor Bill Lee, Senator Marsha Blackburn, LG Chem CEO Shin Hak-cheol, and LG Chem President of Advanced Materials Company Nam Chul.

“With the Tennessee cathode material plant as the center, LG Chem will undoubtedly leap to become the top cathode material supplier in North America,” said CEO Shin Hak-cheol. “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.”

The new LG Chem plant will source materials from nations that hold U.S. free trade agreements, thus aligning with tax credit requirements outlined by the U.S. Inflation Reduction Act. The plant will also leverage smart factory technology in the automation and quality control processes, and there are plans to operate the plant using renewable energy as well.

Last year, LG Chem reached an agreement with GM to supply the automaker with 950,000 tons of cathode active material through 2030. The agreement will be enough to produce roughly five million EV units, and will be used in production at GM’s Ultium Cells LLC battery plants in Ohio, Tennessee, and Lansing, Michigan.

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Jonathan is an automotive journalist based out of Southern California. He loves anything and everything on four wheels.

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Comments

  1. Hilarious!

    Reply
  2. So Mary convinced LG too join GM in the EV bankruptcy death spiral… Interesting and not good.

    Reply

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