South Korea’s LG Chem announced on Tuesday it plans to invest $3.2 billion to build the US’ largest cathode active materials (CAM) plant in Tennessee, Kallanish reports.

The facility in Clarksville is slated to produce 120,000 tonnes/year of advanced NCMA cathode materials by 2027. This volume would be enough to power 1.2 million high-performance BEVs with an average range of 310 miles (500 kilometres).

Based on an MOU signed with the state of Tennessee, construction will begin in Q1 2023 to allow mass production to start in H2 2025. The plant will run on 100% renewable power (solar and hydro) and will be the second in the world to feature LG Chem’s most advanced production technology, producing over 10,000 t of CAM per line – the highest level in the industry, according to the manufacturer.

“This is a big win for Tennessee and Montgomery County,” comments economic development commissioner Stuart McWhorter. “As we continue our efforts to attract companies in the automotive industry, we are focused on supporting companies that boost Tennessee’s present in the EV space.”

The parties haven’t disclosed a potential incentive package.

LG Chem says that the state was “the best choice” for its investment because of its proximity to key customers, ease of transporting raw materials, and active cooperation of the state and local governments. It adds the facility allows it to “proactively address the changing dynamics of the global battery material market,” and thanks to supportive legislation may become a supply chain hub for global customers.

Its ceo Shin explains the new plant brings the company one step closer to becoming “the world’s best battery materials manufacturer and fulfilling our corporate vision to become a top global science company. 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 of Clarksville.”

The company expects to create 850 new jobs.