The development of an electric vehicle component manufacturing facility in the United States will cost $3 billion, according to proposals revealed by LG Chem of South Korea.
According to a statement released by LG Chem on Tuesday, the battery cathode production plant in Clarksville, Tennessee, will be the biggest of its kind in the United States and will generate more than 850 employment.
The plant will have an annual production capacity of 120,000 tonnes by 2027, producing components to power 2 million electric vehicles, the South Korean firm said.
“The new cathode manufacturing facility in Tennessee brings us one step closer to becoming the world’s best battery materials manufacturer and fulfilling our corporate vision to become a top global science company,” LG Chem Chief Executive Shin Hak-cheol said.
“This site will be the North American manufacturing centre of excellence for the cathode supply chain and lead to the creation of many well-paying jobs, contributing to the local economy in Clarksville.”
The announcement of the plant, which is slated to start production in 2025, comes after US President Joe Biden in August signed a climate and energy bill that denies tax credits to electric carmakers that heavily source components from China.
Under the Inflation Reduction Act, manufacturers are required to source 40 percent of critical minerals for batteries from the US or one of its free-trade partners to benefit from tax relief, with the share rising to 80 percent in 2027.
South Korean carmakers, including Hyundai Motor, have protested the law, which slashed tax relief for most of its EV models.
LG Chem said the new facility would enable it to respond to the “changing dynamics” of the global battery material market and the Inflation Reduction Act, with the plant functioning as a “supply chain hub” where material and recycling partners work together to supply global customers
Leave a Reply