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TN Gov. Lee announces $3.2 billion investment for manufacturing facility in Clarksville

Gov. Lee announces $3.2 billion investment for manufacturing facility in Clarksville (Photo: FOX 17 News)
Gov. Lee announces $3.2 billion investment for manufacturing facility in Clarksville (Photo: FOX 17 News)
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Tennessee Governor Bill Lee along with Department of Economic and Community Development Commissioner Stuart McWhorter and LG Chem officials announced Monday the plan to invest about $3.2 billion towards a new cathode manufacturing facility in Clarksville, Tennessee.

The TN Department of Economic & Community Development said the investment is aimed to support the electric vehicle battery value-chain in the U.S.

This is a big win for Tennessee and Montgomery County. LG Chem’s decision to locate its new cathode manufacturing facility in Clarksville underscores Tennessee’s growing profile as a hub for U.S. and global companies. As we continue our efforts to attract companies in the automotive industry, we are focused on supporting companies that boost Tennessee’s presence in the EV space. I appreciate LG Chem for its substantial investment in Clarksville and look forward to building a successful partnership with the company in the years ahead.

– TNECD Commissioner Stuart McWhorter

LG Chem’s anticipated investing about $3.2 billion which represents the single largest announced foreign direct investment in Tennessee’s history. The project is expected to bring 860 new jobs in Montgomery County.

LG Chem’s decision to invest $3.2 billion in Clarksville is a testament to Tennessee’s unmatched business climate, skilled workforce and position as a leader in the automotive industry. I thank this company for creating more than 850 new jobs to provide opportunity to Tennesseans across Montgomery County.

– Gov. Lee

The Clarksville facility is going to be the largest of its kind in the U.S. and is expected to produce near 120,000 tons of cathode material annually by 2027. This is enough to power batteries in 1.2 million electric vehicles with a range of 310 miles per charge.

The current plan for the Montgomery County facility is for construction to take place on 420 acres at the Allensworth site in Clarksville. Construction is slated to begin in Q1 2023 with the plant production set to begin by the second half of 2025.

Once the facility is operating, it will manufacture cathode materials, one of the most important ingredients for manufacturing electric vehicle batteries.

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. This site will be the North American manufacturing center of excellence for the cathode supply chain and lead to the creation of many well-paying jobs, contributing to the local economy in Clarksville.

– CEO of LG Chem Hak-Cheol Shin

The Tennessee site will play a necessary role in LG Chem’s plan to increase its battery materials business by producing advanced NCMA cathode materials containing nickel, cobalt, manganese and aluminum for next-generation EV batteries with improved battery capacity and stability.

The Clarksville facility will also feature LG Chem’s most advanced production technology, including the ability to make more than 10,000 tons of cathode material per line, the industry’s highest. LG Chem also plans to enforce its smart factory technology in the state to automate the production process as a whole and start a quality analysis and control system that will be the model for all other cathode plants in the world.

The new facility will be intended with the environment and future needs of clean energy in mind. LG Chem will collaborate with power suppliers in Tennessee to respond to the needs of customers, including battery and electric vehicle manufacturers, for more renewable energy sources.

Operation of the new facility will rely completely on renewable energy that solar and hydroelectric power will provide.

LG Chem was founded in 1947 and is headquartered in Seoul, South Korea. It is a leading chemical and science-oriented company focused on creating a more sustainable future.

TVA and Cumberland Electric Membership Corporation congratulate LG Chem on its decision to establish operations and create impactful job opportunities and investment in Clarksville. We are proud to partner with the Clarksville Montgomery County Industrial Development Board and the Tennessee Department of Economic and Community Development to support companies like LG Chem, that help drive innovation in the Valley and we celebrate this announcement together.

– John Bradley, TVA senior vice president of Economic Development

LG Chem has nearly 19,000 employees across more than 50 global business sites. In 2021, the company had sales of more than $37 billion.

South Korea is one of Tennessee’s top 10 countries for foreign direct investment, and there are about 20 Korean-based establishments that have invested $2.3 billion and employ more than 3,500 people across the state.

The company's $3.2 billion investment will more than double the investments made by South Korean-based companies.

LG Chem’s investment and more job offers contribute to Tennessee’s continued growth in electric vehicle manufacturing. Since 2017, companies vowed to create more than 11,000 new jobs and invested $12.7 billion in the state through EV-related projects. In addition, more than 180,000 electric vehicles have been manufactured in the Volunteer State since 2013, which ranks the state No. 1 in the Southeast for electric vehicle manufacturing.

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