LG Chem Will Invest $3 Billion in a U.S. Battery Cathode Plant

LG Chem Ltd stated on Tuesday that it will invest in excess of $3 billion to build a battery cathode manufacturing plant in Tennessee. The South Korean maker of chemical materials is intensifying its efforts to meet the rising demand for electric vehicle (EV) components in the United States.

The plant will have an annual production capacity of 120,000 tonnes of cathode materials by 2027, enough to power around 1.2 million electric vehicles, LG Chem said in a statement, adding that mass production will commence in the second half of 2025.

LG Chem indicated in a statement that it plans to actively respond to trends in the global battery material market, such as the Inflation Reduction Act (IRA), with its Tennessee cathode manufacturing.

LG Chem stated that it is expanding raw material supply chain cooperation with mining and recycling groups to help its customers achieve IRA guidelines.

In August, U.S. President Joe Biden signed into law a $430 billion bill that, among other provisions, mandates that, beginning the following year, at least 40% of the monetary value of critical minerals for batteries must come from the United States or a free-trade partner of the United States in order to qualify for U.S. tax credits. This percentage will reach 80% by 2027.

The factory will generate approximately 850 new jobs.