LG Chem to Invest $3.2 Billion in Largest U.S. Cathode Plant in Tennessee

South Korea's LG Chem will invest roughly $3.2 billion to establish a battery cathode manufacturing operation in Clarksville, Tennessee, in a project state leaders describe as the single largest foreign direct investment in the state's history. Governor Bill Lee, Economic and Community Development Commissioner Stuart McWhorter and company officials unveiled the plan, which is expected to create 860 new jobs in Montgomery County.

The plant will be the largest cathode manufacturing facility of its kind in the United States. Once fully operational, it is projected to produce about 120,000 tons of cathode material a year by 2027 — enough, according to the company, to power batteries for roughly 1.2 million electric vehicles capable of traveling 310 miles on a single charge.

LG Chem intends to build the state-of-the-art facility on a 420-acre site in Clarksville, with construction slated to begin in the first quarter of 2023 and production targeted for the second half of 2025. The plant will turn out advanced NCMA cathodes — containing nickel, cobalt, manganese and aluminum — that are designed to give next-generation EV batteries greater capacity and stability.

The company said the Tennessee operation will feature its most advanced production technology, including a smart-factory system that automates the entire process and sets quality-control standards intended to serve as a benchmark for cathode plants worldwide. LG Chem also plans to run the facility entirely on renewable power drawn from solar and hydroelectric sources.

State officials framed the investment as a major boost to Tennessee's fast-growing electric vehicle sector. LG Chem's commitment more than doubles the total capital previously invested by South Korean companies in the state, where about 20 Korean-based establishments have poured in $2.3 billion and employ more than 3,500 people.

"This site will be the North American manufacturing center of excellence for the cathode supply chain," said LG Chem Chief Executive Hak-Cheol Shin, adding that it moves the company closer to becoming the world's leading battery materials maker. Governor Lee called the decision "a testament to Tennessee's unmatched business climate," while local leaders in Montgomery County hailed it as a transformative moment for the region.