LG Chem to spend $3.2 billion on cathode plant in the US for EV batteries

LG Chem to spend $3.2 billion on cathode plant in the US for EV batteries

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Tesla is simply a cardinal lawsuit of EV artillery shaper LG Energy Solution. Image: Tesla

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LG Chem, the genitor institution of electrical conveyance (EV) artillery shaper LG Energy Solution, said connected Tuesday that it volition walk $3.2 cardinal to physique a cathode manufacturing works successful Tennessee.

The works astatine Clarksville is aimed to have, by 2027, a yearly output of 120,000 tones of cathode, arguably the astir important worldly utilized successful the accumulation of an EV artillery that determines its show and cost.

LG Chem said the caller works volition beryllium the largest of its benignant successful the US, taking up 420 acres of space. Construction volition commencement aboriginal adjacent twelvemonth with wide accumulation slated to statesman successful 2025.

Tennessee was the champion prime owed to its proximity to cardinal customers, the institution said. Though LG Chem didn't officially accidental so, it is apt gathering the works to service its subsidiary LG Energy Solution.

Tennessee is wherever Ultium Cells, the artillery associated task betwixt LG Energy Solution and General Motors, is gathering its EV artillery manufacturing works in Spring Hill. The task is besides gathering an EV artillery manufacturing works successful Lordstown, Ohio.

LG Energy Solution besides announced successful August that it volition signifier a associated task with Honda to physique an EV artillery manufacturing works successful the US. The brace are readying to walk $4.4 cardinal connected the project.

The pandemic has accrued worries implicit imaginable proviso concatenation disruption portion the prices of earthy worldly specified arsenic nickel utilized successful EV batteries has gone up successful caller years. The US has besides announced assorted policies to physique its ain proviso concatenation locally for products specified arsenic chips and batteries. Compatriot EV artillery shaper SK Innovation is besides gathering a artillery manufacturing works successful Tennessee with Ford. It is besides readying to physique a works connected its ain successful Georgia.

The Tennessee installation volition let LG Chem to proactively code the changing dynamics of the planetary artillery worldly marketplace and with authorities specified arsenic the Inflation Reduction Act, the South Korean chemic elephantine said. The works volition manufacture precocious NCMA cathode materials the institution said. NCMA means the cathode is comprised of nickel, cobalt, and manganese arsenic good arsenic aluminum.

Cathode makers similar LG Chem are attempting to summation the magnitude of nickel utilized to summation the vigor density of EV batteries. LG Energy Solution is the world's second-largest EV artillery shaper aft China's CATL and supplies batteries to US car makers Tesla and General Motors and different car giants.

In May, LG Energy Solution besides announced that it volition walk $4.1 cardinal with car shaper Stellantis to physique a artillery manufacturing works successful Ontario, Canada.

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